articles Ratings /ratings/en/research/articles/231110-bluestone-nz-prime-2021-1-trust-ratings-affirmed-12911405 content esgSubNav
In This List
NEWS

Bluestone NZ Prime 2021-1 Trust Ratings Affirmed

COMMENTS

Structured Finance: Risk Assessment Is Evolving With Cyber Threats

Take Notes - Why TGIF Funding LLC’s Series 2017-1 Class A-2 Was Downgraded

COMMENTS

CLO Insights U.S. BSL Index: CLO Metrics Mostly Hold Steady; Upgrades Outpace Downgrades Across CLO Obligors Rated 'B' And Higher

COMMENTS

CreditWeek: What Are The Biggest Risks To Global Credit In 2025?


Bluestone NZ Prime 2021-1 Trust Ratings Affirmed

MELBOURNE (S&P Global Ratings) Nov. 10, 2023--S&P Global Ratings today affirmed its ratings on seven classes of notes issued by New Zealand Guardian Trust Co. Ltd. as trustee for Bluestone NZ Prime 2021-1 Trust (see list).

The rating actions reflect our view of the credit support available, which is sufficient to withstand the stresses we apply. Credit support comprises note subordination for all rated notes, which has increased compared with what it was on closing, and excess spread, if any.

The asset pool has continued to amortize, which as of Aug. 31, 2023, has a pool factor of 40.4%. There are currently no loans more than 30 days in arrears and there have been no losses to date. The portfolio has generally strengthened, with a weighted-average loan seasoning of 30.2 months and a current weighted-average loan-to-value ratio of 68.8%. These positive factors have been partly offset by an increase in borrower concentrations.

Our ratings are limited by the increasing borrower concentrations in the pool and the risk that it poses as the pool continues to amortize. As of Aug. 31, 2023, the 10 largest borrowers in the portfolio each comprise more than 1% of the pool and in aggregate make up around 14.7% of the total pool balance. The potential for tail-end risks increases as the pool shrinks, with the subordinated note classes being more susceptible to potential losses. We have assessed pool concentrations by applying an additional minimum loss projection when determining the expected loss for the pool. The expected loss for the pool is the higher of the additional minimum loss projection and the number sized when applying our standard credit analysis, as per our "Australian RMBS Rating Methodology And Assumptions" criteria, published Sept. 1, 2011.

The rated classes of notes are currently paying on a sequential basis; however, we expect it to meet the trigger for the second anniversary since closing date in the coming months. Once all performance triggers are met, the transaction will switch to pro-rata paydown.

Our expectation is that the various mechanisms to support liquidity within the transaction, including principal draws, and an amortizing liquidity facility are sufficient to ensure timely payment of interest.

Related Criteria

Related Research

Ratings Affirmed

Bluestone NZ Prime 2021-1 Trust
  • Class A1: AAA (sf)
  • Class A2: AAA (sf)
  • Class B: AA (sf)
  • Class C: A (sf)
  • Class D: BBB (sf)
  • Class E: BB (sf)
  • Class F: B (sf)

REGULATORY DISCLOSURES

Please refer to the initial rating report for any additional regulatory disclosures that may apply to a transaction.

AUSTRALIA

S&P Global Ratings Australia Pty Ltd holds Australian financial services license number 337565 under the Corporations Act 2001. S&P Global Ratings' credit ratings and related research are not intended for and must not be distributed to any person in Australia other than a wholesale client (as defined in Chapter 7 of the Corporations Act).

Primary Credit Analyst:Justin Rockman, Melbourne + 61 3 9631 2183;
justin.rockman@spglobal.com
Secondary Contact:Narelle Coneybeare, Sydney + 61 2 9255 9838;
narelle.coneybeare@spglobal.com

No content (including ratings, credit-related analyses and data, valuations, model, software, or other application or output therefrom) or any part thereof (Content) may be modified, reverse engineered, reproduced, or distributed in any form by any means, or stored in a database or retrieval system, without the prior written permission of Standard & Poor’s Financial Services LLC or its affiliates (collectively, S&P). The Content shall not be used for any unlawful or unauthorized purposes. S&P and any third-party providers, as well as their directors, officers, shareholders, employees, or agents (collectively S&P Parties) do not guarantee the accuracy, completeness, timeliness, or availability of the Content. S&P Parties are not responsible for any errors or omissions (negligent or otherwise), regardless of the cause, for the results obtained from the use of the Content, or for the security or maintenance of any data input by the user. The Content is provided on an “as is” basis. S&P PARTIES DISCLAIM ANY AND ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE, FREEDOM FROM BUGS, SOFTWARE ERRORS OR DEFECTS, THAT THE CONTENT’S FUNCTIONING WILL BE UNINTERRUPTED, OR THAT THE CONTENT WILL OPERATE WITH ANY SOFTWARE OR HARDWARE CONFIGURATION. In no event shall S&P Parties be liable to any party for any direct, indirect, incidental, exemplary, compensatory, punitive, special or consequential damages, costs, expenses, legal fees, or losses (including, without limitation, lost income or lost profits and opportunity costs or losses caused by negligence) in connection with any use of the Content even if advised of the possibility of such damages.

Credit-related and other analyses, including ratings, and statements in the Content are statements of opinion as of the date they are expressed and not statements of fact. S&P’s opinions, analyses, and rating acknowledgment decisions (described below) are not recommendations to purchase, hold, or sell any securities or to make any investment decisions, and do not address the suitability of any security. S&P assumes no obligation to update the Content following publication in any form or format. The Content should not be relied on and is not a substitute for the skill, judgment, and experience of the user, its management, employees, advisors, and/or clients when making investment and other business decisions. S&P does not act as a fiduciary or an investment advisor except where registered as such. While S&P has obtained information from sources it believes to be reliable, S&P does not perform an audit and undertakes no duty of due diligence or independent verification of any information it receives. Rating-related publications may be published for a variety of reasons that are not necessarily dependent on action by rating committees, including, but not limited to, the publication of a periodic update on a credit rating and related analyses.

To the extent that regulatory authorities allow a rating agency to acknowledge in one jurisdiction a rating issued in another jurisdiction for certain regulatory purposes, S&P reserves the right to assign, withdraw, or suspend such acknowledgement at any time and in its sole discretion. S&P Parties disclaim any duty whatsoever arising out of the assignment, withdrawal, or suspension of an acknowledgment as well as any liability for any damage alleged to have been suffered on account thereof.

S&P keeps certain activities of its business units separate from each other in order to preserve the independence and objectivity of their respective activities. As a result, certain business units of S&P may have information that is not available to other S&P business units. S&P has established policies and procedures to maintain the confidentiality of certain nonpublic information received in connection with each analytical process.

S&P may receive compensation for its ratings and certain analyses, normally from issuers or underwriters of securities or from obligors. S&P reserves the right to disseminate its opinions and analyses. S&P's public ratings and analyses are made available on its Web sites, www.spglobal.com/ratings (free of charge), and www.ratingsdirect.com (subscription), and may be distributed through other means, including via S&P publications and third-party redistributors. Additional information about our ratings fees is available at www.spglobal.com/usratingsfees.

 

Create a free account to unlock the article.

Gain access to exclusive research, events and more.

Already have an account?    Sign in