Moody's Investors Service has said that Australian ABS performance experienced slightly higher delinquencies across most programs.
The continuing stable outlook is based on the accumulation of credit enhancement as well as the strong receivable credit quality, the rating agency stated.
It anticipates that the default rates for the underlying collateral will be steady and supported by the country's robust economic growth.
The losses, according to Moody's will be stable for all vintages throughout this year. Meanwhile, the growth rate of losses for the 2010 vintage will slow by the 2Q12.
In 4Q12, the cumulative defaults rose within the 2% to 8% range, quarter-over-quarter, for the 2007, 2008, and 2009 vintages, analysts said.
The cumulative net losses rose in the range of 4% to 11%, quarter-over-quarter, for the 2007, 2008, and 2009 vintages, the rating agency reported.
There was a 48% increase in 2010 vintage defaults, and a 50% rise in net losses, quarter-over quarter. There have also been no upgrades or downgrades of Australian ABS notes since October 2011, and the ABS deal rating performance continues to be within Moody's expectations.
The rating agency stated that it was a record year for Australian ABS issuance last year, with 12 deals in total and a volume of AUD$5.76 billion.
