RAM reaffirms TM-originated mortgagebacked MTN’s AAA ratings

KUALA LUMPUR: RAM Rating Service Bhd ( RAM Ratings) reaffirmed the AAA/ Stable rating of AmMortgage One Bhd’s (AmMortgage) RM339.38 million First Note Series medium-term notes ( MTN), which involved the securitisation against staff mortgages originated by Telekom Malaysia Bhd (TM).

The First Note Series was issued in 2009 under AmMortgage’s RM1 billion MTN Programme, of which RM35 million remained outstanding.

“The rea ffirmat ion of the rating reflects the ample collateral coverage supporting the transaction, where the overcollateralisation ratio as at end-March 2018 stood at 111.38 per cent, backed by RM69.3 million in outstanding mortgage principal and RM4 million in cash,” it said in a statement yesterday.

RAM Ratings said the MTN also benefited from additional credit enhancements available to AmMortgage through mortgage programme payment fees from TM, which mitigated the negative yield spread in the note issuance. — Bernama