Bankwest Enters RMBS Market For First Time Since Being Acquired By CBA

Post by NeilMc on March 18, 2010 · Under Business News, Capital Markets, Company News, banking · Comment

Bankwest has waded into the residential mortgage backed securities market for the first time since it was acquired by Commonwealth Bank for $2 billion. The lender launched a $620 million deal with three different classes of securities.

Global credit ratings agency Standard & Poor’s gave the $586 million in A-class notes a triple A and assigned the same rating to AB notes valued at $23.4 million.

S&P gave Bankwest’s B notes valued at $10.6 million a double A negative rating.

In assigning the ratings, the ratings agency says that there is sufficient credit support in each class of notes.

Structured finance analyst Fiona Otway said: “Our expectation is that the various mechanisms to support liquidity within the transaction are sufficient under our stress assumptions to ensure timely payment of interest.”

S&P expects payment of interest and principal by April 2041 for all classes of notes.

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