S&P downgrades AM Securitised Traded Policies Trust
The AM Securitised Traded Policies Trust No 1 has been downgraded by ratings house Standard and Poor’s (S&P), following the recent lowering of AMP Life’s counterparty credit rating to AA-/Negative from AA/Negative.
According to S&P, the downgrading of the trust, from AA to - AA, is a direct response to the ratings demotion of AMP Life’s securitised endowment policies, which have fallen victim to the funds management giant’s recent share market woes.
“The trust is transaction dependent and reliant on receiving cash flows from maturing policies issued by AMP,” a Standard and Poor’s spokesperson says.
The AM trust closed late March after its launch a month earlier. Cash flows from more than 8000 endowment policies were repackaged to create three unit classes; A1, A2 and B. At the time, the class A1 units were given a double A rating based on the predetermined payments from the providers of the insurance policies, AMP Life and MLC Lifetime.
The trusts assets are predominately a portfolio of selected endowment policies, 97 per cent of which is superannuation, which have been converted in the secondary market from whole of life insurance policies.
Recommended for you
A relevant provider has received a written direction from the Financial Services and Credit Panel after a superannuation rollover resulted in tax bill of over $200,000 for a client.
Estimates for the calendar year 2024 put the advice industry on track for a loss in adviser numbers as exits offset gains from new entrants.
Adviser Ratings shares five ways that financial advice changed in 2024 with an optimistic outlook for 2025, thanks to the Delivering Better Financial Outcomes legislation.
National advice firm Invest Blue has announced several acquisitions, including the purchase of an estate planning and wealth protection business Lambert Group.
