Stable outlook reflects strong servicing quality, experienced management, and robust infrastructure
S&P Global Ratings has reaffirmed its “Strong” rankings for Pepper Money as a residential loan servicer in both the subprime and prime categories. The outlook for both rankings remains stable, according to a report by the credit rating agency.
The rankings reflect Pepper Money’s continued strong performance in servicing quality and highlight its position as a key player in the Australian mortgage servicing market.
“Pepper Money has a well-established position as a primary servicer of nonconforming residential mortgage loans, with a high degree of industry knowledge and proficiency,” S&P Global Ratings stated.
The report also credited the company with successfully leveraging its expertise in nonconforming loan servicing to develop prime loan-servicing operations of comparable quality.
S&P highlighted several factors underpinning the rankings, including Pepper Money’s experienced senior management team and skilled workforce.
“It has an experienced senior management team that leads a well-qualified and skilled workforce,” it said. The company’s robust loan-processing infrastructure, end-to-end servicing approach, and comprehensive internal audit framework were also recognised as key strengths.
The stable outlook reflects S&P’s expectation that Pepper Money will continue to demonstrate strong servicing capabilities.
“We expect Pepper Money will maintain its strong loan-processing and servicing competence, supported by its experienced management team, well-qualified staff, and substantial technology infrastructure,” the agency said.
S&P Global Ratings clarified that servicer rankings are opinions on servicing quality and are not credit ratings, nor should they be considered as such.
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