Permanent TSB began marketing the first post-crisis investor placed Irish RMBS deal this week.
Standard & Poor’s has assigned preliminary ratings to the upcoming deal called Fastnet Securities 9. Morgan Stanley is lead arranger on the deal.
The class A1 notes are have been assigned a AA+’ ratings; the class A2 have been assigned a AA’ ratings; the class A3 notes have been assigned a AA-’ ratings and the class A4 notes have been assigned a A+’ ratings. S&P will not rate the class Z notes.
The capital structure provides 34% of credit enhancement for the class A notes and a 3.54-year weighted average life.
Deutsche Bank analysts said in a securitization report on Monday that the announcement of the deal “was a surprise in a sector where new publicly placed RMBS has been absent following the financial crisis.”
PTSB completed its first securitization in 1999. Fastnet Securities 9 will be PTSB's ninth securitization under the Fastnet banner.
The 1.06 billion provisional pool is backed by first-lien, owner-occupied, performing Irish residential mortgages, originated by PTSB.
None of the borrowers have had arrears amounts greater than, or equal to, one monthly payment, nor have their loans been restructured or subject to forbearance measures in the previous two years. However, 56% of the portfolio is made up of loans that were previously securitized in Fastnet Securities 4 Ltd., in which 90+ day delinquencies reached 13.6% in December 2012.
S&P said in the presale report that as a result it has incorporated Fastnet Securities 4's performance and the arrears performance of home loans on PTSB's book into its expectation of arrears in Fastnet Securities 9.