Bangkok--4 Jun--Moody's Investors
Moody's Investors Service says that performance of mortgage loans in outstanding RMBS originated from Korea, Hong Kong and Taiwan remained steady during 1Q2010 with no downward pressure evident on ratings in all three markets.
Moody's analysis appeared in its just-published 1Q2010 report, entitled "Asia ex-Japan RMBS 1Q2010 Performance Review."
For Korea, as of end-March 2010, the gross default ratio was less than 0.4% of the outstanding pool balance for all transactions.
"Moody's has a stable outlook on the performance of Korea's mortgage loan receivables. With the current low delinquencies for mortgage loans, the subordination in the transactions is sufficient for the ratings on the relevant notes," says Marie Lam, a Moody's VP/Senior Credit Officer and author of the report.
For Hong Kong, the ratio of 30-119 days past due -- as a percentage of the outstanding pool balance -- was around 0.1-0.2%, which is negligible.
In the report, Moody's also discussed the performance of mortgage loans in Taiwan's two cross-border RMBS transactions. As of end-March 2010, the gross default ratio of Hsinchu International Mortgage 1 Limited ("Hsinchu 1") was 2% and for Hsinchu International Mortgage 2 Limited ("Hsinchu 2') was 5.4%.
"Mortgage loans in Hsinchu 2 have higher LTV than Hsinchu 1. Hence, Hsinchu 2 has a higher default ratio. However, the performance of the mortgage loans in Hsinchu 2 has stabilized in the last few month," says Lam.
"Currently, these two transactions have rich subordination as a result of their sequential payment structures and provide sufficient protection against current performance. Moody's sees no rating implications for these two RMBS transactions," adds Lam.
"Asia ex-Japan RMBS 1Q2010 Performance Review," which is part of Moody's efforts to provide more information and transparency to this market, is available at www.moodys.com.
In addition, Moody's publishes a weekly summary of structured finance credit, ratings and methodologies, available to all registered users of our website, at www.moodys.com/SFQuickCheck.
Hong Kong
Marie Lam
VP - Senior Credit Officer
Structured Finance Group
Moody's Asia Pacific Ltd.
JOURNALISTS: (852) 2916-1150
SUBSCRIBERS: (852) 3551-3077
Hong Kong
Jerome Cheng
VP - Senior Credit Officer
Structured Finance Group
Moody's Asia Pacific Ltd.
JOURNALISTS: (852) 2916-1150
SUBSCRIBERS: (852) 3551-3077