RESIMAC Triomphe Trust - RESIMAC Premier Series 2018-1 Prime RMBS Assigned Preliminary Ratings

Stocks and Financial Services Press Releases Monday May 14, 2018 09:18
MELBOURNE--14 May--S&P Global Ratings

MELBOURNE (S&P Global Ratings) May 14, 2018--S&P Global Ratings today assigned its preliminary ratings to eight classes of prime residential mortgage-backed securities (RMBS) to be issued by Perpetual Trustee Co. Ltd. as trustee for RESIMAC Triomphe Trust - RESIMAC Premier Series 2018-1 (see list). RESIMAC Triomphe Trust - RESIMAC Premier Series 2018-1 is a securitization of prime residential mortgages originated by RESIMAC Ltd.

The preliminary ratings reflect:
  • Our view of the credit risk of the underlying collateral portfolio, including 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 note subordination for the rated notes and lenders' mortgage insurance to 35.6% of the portfolio, which covers 100% of the face value of these loans, accrued interest, and reasonable costs of enforcement.
  • Our expectation that the various mechanisms to support liquidity within the transaction, including a liquidity facility equal to 0.75% of the outstanding balance of the notes, and principal draws, are sufficient under our stress assumptions to ensure timely payment of interest.
  • The extraordinary expense reserve of A$250,000, funded by RESIMAC Ltd. before closing, available to meet extraordinary expenses. The reserve will be topped up via excess spread if drawn.
  • 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 notes to be provided by National Australia Bank Ltd.
  • The management of 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 to be provided by National Australia Bank Ltd. and Westpac Banking Corp. In addition, National Australia Bank Ltd. Will provide a liability swap to hedge the fixed interest rate payable semiannually on the class A3a notes and the variable rate received on the underlying mortgages.

A copy of S&P Global Ratings' complete report for RESIMAC Triomphe Trust - RESIMAC Premier Series 2018-1 can be found on RatingsDirect, S&P Global Ratings' web-based credit analysis system, at http://www.capitaliq.com.

PRELIMINARY RATINGS ASSIGNED
Class Rating Amount (mil.)
A1 AAA (sf) US$210.00
A2 AAA (sf) A$288.75
A3a AAA (sf) A$50.00
A3b AAA (sf) A$62.50
AB AAA (sf) A$47.25
B AA (sf) A$11.25
C A (sf) A$7.50
D BB (sf) A$6.00
E NR A$3.00
NR--Not rated.

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