South African RMBS issuer Investec Bank is refinancing notes under its program called Private Residential Mortgages (PRM) Ltd - Series 2.
The transaction, according to a Moody's Investors Service presale report, is the fifth securitization of South African residential mortgage loans that were originated by Investec. It is also the third refinancing of the notes within PRM — Series 2. This series was originally rated by Moody's in November 2007.
According to Moody's, the assets that are supporting the notes are prime mortgage loans backed by residential properties located in South Africa. Investec is also the contractual servicer and administrator.
In a related report released today based on the latest indices Moody's publishes, the rating agency said that the South African RMBS market stayed stable in the six-month period leading to March 2011.
From October 2010 to March 2011, the 90+ day delinquency trend was stable at 3.4% of the current balance, the report stated. The deals in the Blue Granite series and GreenHouse Funding (Pty) Ltd - Series 1 had the most 90+ day delinquencies, Moody's said. They reached their peak at 5.7% in February and 5.1% in January, respectively.
The rating agency also said that four of the nine RMBS offerings that it now rates are amortizing as a result of the ongoing breach of the respective performance triggers in the pertinent deals.
It also said that it did not take any rating actions in the last six months on South African RMBS notes. This is mostly a result of the country's mortgage deals' overall weaker performance has been offset by the rising arrear reserves and note amortization, which have lead to higher credit enhancement for the notes.