Pepper I-Prime 2018-1 Trust Prime RMBS Assigned Preliminary Ratings

Stocks and Financial Services Press Releases Wednesday May 23, 2018 09:31
MELBOURNE--23 May--S&P Global Ratings

MELBOURNE (S&P Global Ratings) May 23, 2018--S&P Global Ratings today assigned its preliminary ratings to eight classes of prime residential mortgage-backed securities (RMBS) to be issued by Permanent Custodians Ltd. as trustee of Pepper I-Prime 2018-1 Trust (see list). Pepper I-Prime 2018-1 Trust is a securitization of prime 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.
  • The underwriting standard and centralized approval process of the seller, Pepper Homeloans.
  • The availability of a yield-enhancement reserve, amortization reserve, and overcollateralization amount, which will all be funded by excess spread to cover potential yield shortfalls and loss reimbursements and to repay principal on the notes at various stages of the transaction's term.
  • The extraordinary expense reserve of A$150,000, funded by Pepper on or before closing, available to meet extraordinary expenses. The reserve will be topped up via excess spread if drawn.
  • Our expectation that the various mechanisms to support liquidity within the transaction, including a liquidity facility equal to 2.2% of the outstanding balance of the notes, and principal draws, are sufficient under our stress assumptions to ensure timely payment of interest.
A copy of S&P Global Ratings' complete report for Pepper I-Prime 2018-1 Trust 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-S AAA (sf) 120.0
A1-L AAA (sf) 200.0
A2 AAA (sf) 48.0
B AA (sf) 10.6
C A (sf) 8.0
D BBB (sf) 5.4
E BB (sf) 3.6
F B (sf) 2.2
G NR 2.2
NR--Not rated.

Latest Press Release

Fitch Affirms SCB Asset Management at #Excellent(tha)#

Fitch Ratings (Thailand) Limited has affirmed Thailand-based SCB Asset Management Co., Ltd's (SCBAM) National Investment Management Quality Rating (IMQR) at 'Excellent(tha)'. The Outlook is Stable. KEY RATING DRIVERS SCBAM's National IMQR reflects its...

Aaron System launches #Aaron Platform (Everycoin and TabiPay) via Blockchain 3.0 Technology.

Aaron System Company Limited (Aaron System), a financial platform business, launched 'Aaron Platform' (Everycoin) via the blockchain 3.0 technology. The Main Blockchain is 'Everycoin,' which is a currency with liquidity. The ultimate goal is to be a hub...

Photo Release: SCB VDO content grabs 3 awards at Asias Customer Experience in Financial Services Summit and Awards 2018 event

Siam Commercial Bank (SCB), represented by Senior Vice President and Head of Social Media & Digital Content Division Junphen Juntana, recently joined theCustomer Experience in Financial Services Awards 2018 ceremony held in Singapore. At the event,...

ภาพข่าว: ธนาคารไทยพาณิชย์ คว้า 3 รางวัลยอดเยี่ยมระดับภูมิภาคเอเชีย ในการสร้างวิดีโอคอนเทนต์จับใจลูกค้า

ธนาคารไทยพาณิชย์คว้า 3 รางวัลยอดเยี่ยมระดับภูมิภาคเอเชียจากงาน Customer Experience in Financial Services Awards 2018 ครั้งที่ 4 ในหมวดรางวัล รางวัล Best Brand Engagement, Best Use of Social Media และ Best CX Business Model จากผลงานวิดีโอคอนเทนต์ชุด...

HSBC LAUNCHES DIGITAL TRADE TRANSACTION TRACKER

HSBC today launched the Trade Transaction Tracker, a mobile application (app) feature which will enable corporates to track their trade transactions on a real-time basis. This feature is built into the existing HSBCnet Mobile Application and the...

Related Topics