RATING DRIVERS
Supporting Factors
- Simple transaction structure, with effective credit enhancement built in
- Legal and regulatory framework supporting the transaction provides adequate protection to investors
- TTMF’s sound underwriting practices underpin historically good asset quality
Constraining Factor
- Considerable deterioration in credit quality of the securitised loans in the mortgage pool
- Mortgage pool seasoning along with a challenging economic environment could increase default risk
Rating Sensitivity Factors
Factor that could lead to an improvement of the ratings and/ or Outlook include:
- A return to delinquency levels of 2% – 4% within the underlying mortgage pool over the next 12-15 months.
Factor that could lead to a lowering of the ratings and/ or Outlook include:
- Persistent delinquency levels of above 20% within the underlying mortgage pool leading to heightened extension and/ or default risk over the next 12-15 months
BACKGROUND
CMO 2019-01 is a structured finance debt instrument issued by the Home Mortgage Bank (HMB or The Bank) to securitise residential mortgage assets purchased from the Trinidad & Tobago Mortgage Finance Company Limited (TTMF or the Company) on the secondary market. CMO 2019-01 offers participation certificates in 9 tranches in the amount of TT $200 million as follows:
Analytical Contacts:
André Joseph
Tel: 1-868-627-8879 Ext. 224
Mobile 1-868-788-4693
E-mail: [email protected]
Anelia Oudit
Tel: 1-868-627-8879 Ext. 226
Mobile: 1-868-487-8364
E-mail: [email protected]
Website: www.caricris.com
E-mail: [email protected]
Disclaimer: CariCRIS has taken due care and caution in compilation of data for this product. Information has been obtained by CariCRIS from sources which it considers reliable. However, CariCRIS does not guarantee the accuracy,adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. No part of this report may be published / reproduced in any form without CariCRIS’ prior written approval. CariCRIS is also not responsible for any errors in transmission and especially states that it has no financial liability whatsoever to the subscribers/ users/ transmitters/ distributors of this product.