Manila, Philippines - The proposed issuance of the second series of Bahay Bonds (BahayBonds2 or BB2) by the state-run National Home Mortgage Finance Corp has obtained positive ratings from the Philippine Rating Services Corp. (PhilRatings).
In a statement, PhilRatings said the “BahayBonds2 securitization issue has been assigned a conditional credit rating of PRS Aa for both the P300 million Class A senior notes and the P120 million class B senior notes. A conditional credit rating of PRS Baa, was given to the P180 million Class C subordinated notes.”
Obligations rated PRS Aa are of high quality and are subject to very low credit risk while obligations rated PRS Baa exhibit adequate protection parameters.
BahayBonds2 will be the first-ever retail housing asset backed securities in the country. According to PhilRatings, “The loans in the asset pool are highly seasoned and are considered as low delinquent accounts.”
The favorable ratings also reflect NHMFC’s strong credit enhancement and standby liquidity facilities which provide adequate protection against payment default and the moderated concerns on asset pool performance given the material amount of restructured loans included in the portfolio. “This is further boosted by the relatively positive economic outlook for the Philippines,” PhilRatings said.