Construction equipment loans remain stressed due to the slow growth rate in the mining and infrastructure sectors. In February 2015, weighted average (WA) 90+dpd delinquency rose sharply to 4.94% from 3.23% in February 2014. Higher delinquencies were observed in 2013 and 2014 vintages with WA 90+dpd delinquencies reaching to 5.36% and 4.50% in February 2015, respectively. However, no negative rating actions have been taken due to the availability of excess interest spread and sufficient credit enhancement levels.
WA 180+dpd delinquencies for tractor loans also increased to 3.79% (WA amortisation of 78.16%) in February 2015 from 2.98% (WA amortisation: 57.0%) in March 2014. However, negative rating actions were not taken and also are unlikely to be taken given the significant amortisation and available credit protection.
A stable performance was observed in Ind-Ra rated mortgage loans. 2014 vintage transactions kept performing better than all other vintages with no loans moving to 60+dpd delinquency buckets.
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