MELBOURNE (S&P Global Ratings) Nov. 20, 2023--S&P Global Ratings today raised its ratings on four 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 2021-4. At the same time, we affirmed our ratings on three classes of notes (see list).
The raised ratings reflect our declining expectation of losses because the loan-to-value (LTV) ratio has decreased for the underlying collateral portfolio and available credit support to the notes is consistent with the higher rating level. As of Aug. 31, 2023, the pool has a current weighted-average LTV ratio of 62.3%%, weighted-average seasoning of 34.2 months, and pool factor of about 52.6%.
The transaction continues to perform well, with low levels of arrears. As of Oct. 31, 2023, 0.37% of the pool is more than 30 days in arrears, of which 0.20% is more than 90 days in arrears. There have been no losses to date for this portfolio.
We believe that the credit support provided to each class of notes is sufficient to withstand the stresses we apply at each respective rating level. Credit support is provided via subordination from junior notes. In addition, lenders' mortgage insurance provides credit support for 14.9% of the portfolio.
We expect that the various mechanisms to support liquidity within the transaction, including principal draws and an amortizing liquidity reserve, are sufficient to ensure timely payment of interest for each class of notes at its respective rating level.
The factors constraining our ratings on the class D and class E notes are the absolute amount of credit support and greater sensitivity to current macroeconomic conditions that could lead to higher arrears. A rise in arrears would lead to an increase in expected losses, which constrains our ratings on the class D notes at 'BBB+ (sf)' and class E notes at 'BB+ (sf)'.
A copy of S&P Global Ratings' complete report for Firstmac Mortgage Funding Trust No.4 Series 2021-4 can be found on RatingsDirect, S&P Global Ratings' web-based credit analysis system, at https://www.capitaliq.com.
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Firstmac Mortgage Funding Trust No.4 Series 2021-4
- Class B: to AAA (sf) from AA (sf)
- Class C: to AA (sf) from A (sf)
- Class D: to BBB+ (sf) from BBB (sf)
- Class E: to BB+ (sf) from BB (sf)
Firstmac Mortgage Funding Trust No.4 Series 2021-4
- Class A-1: AAA (sf)
- Class A-2: AAA (sf)
- Class A-3: AAA (sf)
Please refer to the initial rating report for any additional regulatory disclosures that may apply to a transaction.
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:||Rohan Libbis, Melbourne +61 3 9631 2172;|
|Secondary Contact:||Narelle Coneybeare, Sydney + 61 2 9255 9838;|
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