Firstmac Managing Director Kim Cannon said the ranking, which is the highest possible, confirmed Firstmac’s position as a prudent and sustainable lender.

“The S&P Global Ratings’ “Strong” ranking is a welcome demonstration of confidence from the world’s leading ratings agency,” Mr Cannon said.

“This ranking is based on a thorough review of our operations and confirms that our operations, risk management and corporate governance are world class.”

In its Servicer Evaluation, S&P Global Ratings' highlighted Firstmac’s experienced management team and use of technology.

“The overall STRONG prime residential loan servicer ranking on Firstmac Ltd. reflects S&P Global Ratings' opinion that Firstmac continues to demonstrate strong servicing quality,” S&P said.

“Firstmac has an experienced management team and effectively uses technology in its well-automated mortgage loan-servicing operations.”

It said that Firstmac's key strengths included:

·         A well-established position as an experienced primary servicer of prime residential mortgages

·         A comprehensive corporate governance and risk-management framework

·         A well-designed internal-controls framework and internal audit program, supported by structured annual audit plans;

·         Solid loan-processing and servicing infrastructure

·         A robust training and development program

·         Prudent servicing policy and procedures, contributing to a low arrears level that compares favourably with S&P's Performance Index (SPIN) for Australian prime RMBS transactions

S&P gave Firstmac a stable outlook, reflecting its view that that Firstmac would maintain its servicing strengths in the medium term through continued improvements in its processing and servicing practices.