Ratings Assigned To Bendigo And Adelaide Bank's TORRENS Series 2013-2 Trust Prime RMBS

Stocks and Financial Services Press Releases Thursday June 27, 2013 14:51
MELBOURNE--27 Jun--Standard & Poor's

MELBOURNE (Standard & Poor's) June 27, 2013--Standard & Poor's Ratings Services today assigned its ratings to the four classes of prime residential mortgage-backed securities (RMBS) issued by Perpetual Trustee Co. Ltd. as trustee for TORRENS Series 2013-2 Trust (see list).

The ratings reflect:
  • Our view of the credit risk of the underlying collateral portfolio, including the fact that this is a closed portfolio, which means no further loans will be assigned to the trust after the closing date.
  • Our view that the credit support is sufficient to withstand the stresses we apply. This credit support comprises mortgage insurance covering 100% of the face value of all loans, accrued interest, and reasonable costs of enforcement; and note subordination for the class A, class AB, and class B1 notes.
  • Our expectation that the various mechanisms to support liquidity within the transaction, including a liquidity facility equal to 1.3% of the initial invested amount of all notes, principal draws, and an excess reserve, are sufficient under our stress assumptions to ensure timely payment of interest.
  • The transaction's provision of an excess reserve, which can build up from excess spread to a limit of 40 basis points of the initial aggregate invested amount of the notes. Any funds in the reserve will be available to cover any interest shortfalls on the notes and for the reimbursement of any principal draws.
  • The management of asset interest rate risk. Interest-rate risk between any fixed-rate mortgage loans and the floating-rate obligations on the notes are appropriately hedged via interest-rate swaps provided by Bendigo and Adelaide Bank Ltd. and Deutsche Bank AG (Australia), the standby swap provider.

A copy of Standard & Poor's complete report for TORRENS Series 2013-2 Trust can be found on Global Credit Portal, Standard & Poor's Web-based credit analysis system, at http://www.globalcreditportal.com. The issuer has not informed Standard & Poor's (Australia) Pty Limited that the issuer will be publicly disclosing all relevant information about the structured finance instruments that are subject to this rating report.


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