Moody's says ABS performance positive

Philip Bayley
In its latest review of Australian ABS entitled "Australian Auto and Equipment Lease ABS: 2009 Performance Update", Moody's says the overall performance of the sector has been positive. The credit ratings agency recently upgraded fifteen notes from five deals, primarily due to the combination of collateral out-performance and strong credit support build-up (in the case of the 2007 vintage.)
 
Even those transactions that did not experience any rating action are still performing in line with Moody's expectations, despite the difficult macroeconomic conditions in 2009. With the economy in recovery mode, Moody's expects collateral performance to remain stable over the next 12 to 18 months.