Moody’s rates Am­ber House Fund 2 (RF)

The Pak Banker - - Front Page -

LON­DON

Global rat­ing agency Moody’s to­day as­signed de­fi­na­tive credit rat­ings to the fol­low­ing classes of notes to be is­sued by Am­ber House Fund 2 (RF) Ltd: Rand 728M Class A1 Mort­gage Backed Float­ing Rate Notes due April 2041, As­signed A1 (sf)/Aaa.za (sf) Rand 35.2M Class B1 Mort­gage Backed Float­ing Rate Notes due April 2041, As­signed Baa3 (sf)/A3.za (sf) Rand 36.8M Class C1 Mort­gage Backed Float­ing Rate Notes due April 2041, As­signed B1 (sf)/Ba2.za (sf) A unique fea­ture for this trans­ac­tion is the sub­or­di­na­tion of in­ter­est. Note­hold­ers are due ad­di­tional amounts sub­or­di­nated in the wa­ter­fall, if avail­able. The coupons do not step-up, how­ever fol­low­ing the IPD in Oc­to­ber 2015 the sub­or­di­nated amounts due will in­crease. Non pay­ment of sub­or­di­nated in­ter­est is not con­sid­ered an event of de­fault and such missed pay­ment will not de­fer to a fu­ture pay­ment date. These ad­di­tional pay­ments both pre and post the call date have not been as­sessed as part of the as­signed rat­ings. This fea­ture is dif­fer­ent to pre­vi­ous Thek­wini transactions but does ex­ist in the Am­ber House Fund 1 trans­ac­tion. A fur­ther unique fea­ture is in­cluded whereby the re­serve fund amor­tises to a set sched­ule with­out any stop amor­ti­sa­tion trig­gers.

The rat­ings are pri­mar­ily based on the credit qual­ity of the port­fo­lio, its diver­sity, the struc­tural fea­tures of the trans­ac­tion and its le­gal in­tegrity. From the as­sess­ment of the credit qual­ity of the un­der­ly­ing mort­gage loan pool, Moody’s de­ter­mined the port­fo­lio expected loss of 1.4% and MI­LAN Aaa Credit En­hance­ment (CE) of 10%.

Newspapers in English

Newspapers from Pakistan

© PressReader. All rights reserved.