Pepper Residential Securities Trust No.17 RMBS Assigned Preliminary Ratings

Stocks and Financial Services Press Releases Tuesday October 4, 2016 16:37
MELBOURNE--4 Oct--S&P Global Ratings

MELBOURNE (S&P Global Ratings) Oct. 4, 2016--S&P Global Ratings today assigned its preliminary ratings to five classes of nonconforming residential mortgage-backed securities (RMBS) to be issued by Permanent Custodians Ltd. as trustee of Pepper Residential Securities Trust No.17 (see list). Pepper Residential Securities Trust No.17 is a securitization of nonconforming residential mortgages originated by Pepper HomeLoans Pty Ltd.

The preliminary ratings reflect:

Our view of the credit risk of the underlying collateral portfolio, including our view that the credit support is sufficient to withstand the stresses we apply. The credit support for the rated notes comprises note subordination. Subordination provided to the 'AAA (sf)' rated notes is in excess in our opinion of the minimum 'AAA (sf)' level of credit support.

The underwriting standard and centralized approval process of the seller, Pepper Homeloans.

The availability of a retention amount, amortization amount, and yield reserve, which will all be funded by excess spread, but at various stages of the transaction's term. They will have separate functions and timeframes, including reducing the balance of senior notes, reducing the balance of the most subordinated notes, and paying senior expenses and interest shortfalls on the class A notes.

Our expectation that the various mechanisms to support liquidity within the transaction, including a liquidity facility equal to 2.5% of the outstanding balance of the notes, and principal draws, are sufficient under our stress assumptions to ensure timely payment of interest.

In addition, there is a condition that a minimum margin will be maintained on the assets.
The benefit of a cross-currency swap to hedge the mismatch between the Australian dollar receipts from the underlying assets and the U.S. dollar payments on the class A1-ua and class A1-ub notes.
The benefit of a liability swap to hedge the interest-rate risk between the fixed-interest due on the class A1-af notes and the interest received on the underlying mortgages.

A copy of S&P Global Ratings' complete report for Pepper Residential Securities Trust No.17 can be found on RatingsDirect, S&P Global Ratings' web-based credit analysis system, athttp://www.globalcreditportal.com

The issuer has not informed Standard & Poor's (Australia) Pty Ltd. whether the issuer is publically disclosing all relevant information about the structured finance instruments that are subject to this rating report or whether relevant information remains non-public.

S&P GLOBAL RATINGS 17G-7 DISCLOSURE REPORT

SEC Rule 17g-7 requires an NRSRO, for any report accompanying a credit rating relating to an asset-backed security as defined in the Rule, to include a description of the representations, warranties and enforcement mechanisms available to investors and a description of how they differ from the representations, warranties and enforcement mechanisms in issuances of similar securities.

The S&P Global Ratings 17g-7 Disclosure Report included in this credit rating report is available at http://www.standardandpoors.com/en_US/web/guest/article/-/view/type/PDF/id/1729 399

Latest Press Release

Echoworx expands EU reach with new German data centre

Echoworx is pleased to announce the opening of their new data centre in Germany. This move further entrenches Echoworx's presence and competitive edge within the EU region. Known for its proven manufacturing industries, from automotive to...

EXIM Thailand Holds FX Risk Management Seminar Phase 2 to Promote the Use of FX Risk Hedging Tools for SME exporters

Mr. Chana Boonyachai (right), Executive Vice President of Export-Import Bank of Thailand (EXIM Thailand), recently welcomed Mrs. Varintorn Chaivivat (left), Vice-Director, Northern Region Office, Bank of Thailand and Mr. Kobsak Duangdee (center),...

Photo Release: Prudential Thailand organizes Agency Kick Off 2019

Mr. Aman Chowla (7th from right), Chief Executive Officer, Prudential Life Assurance together with Mr. Wichai Cheewasrirungruang (6th from left), Chief Agency Officer, Prudential Life Assurance and the executive management of Prudential Life Assurance...

Photo Release: Bangkok Bank welcomes R3 members to the first Voltron project workshop in Thailand

Bangkok Bank Executive Vice Presidents Pornnit Dunnvatanachit , Kukkong Ruckphaopunt and Senior Vice President and Trade Finance Center Manager Kajohnsak Manaviriyakul welcomed R3 members who joined a Voltron project workshop, the first to be held in...

ZEN Corporation Group Plc. to sell 75 million IPO shares after SEC approved Filing Count 1 Highlights food service business Raises fund for branch expansion and restaurant improvements

'ZEN Corporation Group Plc.' or ZEN is preparing to make its Initial Public Offering (IPO) of 75 million shares after the Securities and Exchange Commission (SEC) approved its Filing Count 1. The group is highlighting its food service business which...

Related Topics