Firstmac Mortgage Funding Trust No.4 Series 1PP-2019 Prime RMBS Assigned Ratings

MELBOURNE (S&P Global Ratings) April 17, 2019--S&P Global Ratings today 
assigned ratings to five of the six classes of prime residential 
mortgage-backed securities (RMBS) issued by Firstmac Fiduciary Services Pty 
Ltd. as trustee for Firstmac Mortgage Funding Trust No.4 Series 1PP-2019 (see 
list).

The ratings reflect:
  • Our view of the credit risk of the underlying collateral portfolio, including the fact that this is a closed portfolio, which means no further loans will be assigned to the trust after the closing date.
  • Our view of the credit support that is sufficient to withstand the stresses we apply. Credit support for the rated notes comprises note subordination, excess spread, and lenders' mortgage insurance on 100% of the portfolio.
  • Our expectation that the various mechanisms to support liquidity within the transaction, including a liquidity reserve equal to 1.2% of the outstanding note balance, and the principal draw function are sufficient to ensure timely payment of interest.
  • The extraordinary expense reserve of A$150,000, funded from day one by Firstmac Ltd., available to meet extraordinary expenses. The reserve will be topped up via excess spread if drawn.
  • The fixed- to floating-rate interest-rate swap provided by National Australia Bank Ltd. to hedge the mismatch between receipts from fixed-rate mortgage loans and the variable-rate RMBS.
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