Australia

Aussie RMBS Looking Good to Moody’s 

Ratings downgrades among Australian prime and non-conforming residential mortgage-backed securities (RMBS) remain unlikely as collateral performs within expectations, according to Moody’s Investors Service. “Moreover, despite a long term trend of increased delinquencies, their ratings are anticipated to remain stable in the absence of mortgage insurer downgrades, while some upgrades should occur as subordination levels increase due to the typically sequential pay structures employed in Australia,” said Moody’s vice president and senior analyst Arthur Karabatsos.