Bangkok--3 Dec--Moody's Investors
Moody's Investors Service says that performance of the mortgage loans in the outstanding RMBS originated from Korea, Hong Kong and Taiwan was steady during 3Q2009.
Moreover, with the current situation, there is no downward pressure evident on ratings. Moody's latest analysis of the three markets appeared in its just-published 3Q2009 report, entitled "Asia ex-Japan RMBS 3Q2009 Performance Review."
For Korea, as of September 2009, the gross default ratio was less than 0.7% of the outstanding pool balance for all transactions.
"This was a big improvement for some deals that had deteriorated since mid-2008. The decrease in delinquency and default ratios came at a time when the macro-economic outlook in Korea was showing signs of recovery.
There is currently no pressure on the ratings of the outstanding transactions," says Marie Lam, a Moody's VP/Senior Credit Officer and author of the report.
Meanwhile, in Hong Kong, the performance of mortgage loans in RMBS transactions was not significantly affected by the financial crisis as they are well seasoned and have accumulated sufficient equity.
Delinquency ratios, which reflect 30-119 days past due and as a percentage of the outstanding pool balance, were less than 0.2% for all transactions.
In the report, Moody's also analyzed the characteristics of the defaulted loans in Hsinchu International Mortgage Loan 1 and 2 Limited, the two cross-border RMBS transactions from Taiwan.
"When comparing the defaulted loans with the original pools in the two transactions, the defaulted loans showed higher loan-to-value ratios, higher collateral values, more properties with commercial use, more loans with delinquent histories and more loans with interest-only periods," adds Lam.
Currently, these two Taiwan RMBS transactions have over 50% subordination as a result of their sequential payment structures. Such subordination provides sufficient protection against default ratios of 2% and 6.6% in the two transactions and Moody's sees no rating implications for them.
The report is now available at www.moodys.com.
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Hong Kong
Jerome Cheng
VP - Senior Credit Officer
Structured Finance Group
Moody's Asia Pacific Ltd.
JOURNALISTS: (852) 2916-1150
SUBSCRIBERS: (852) 3551-3077
Hong Kong
Marie Lam
VP - Senior Credit Officer
Structured Finance Group
Moody's Asia Pacific Ltd.
JOURNALISTS: (852) 2916-1150
SUBSCRIBERS: (852) 3551-3077