TEXT-S&P Asgns Prelim Rtgs To National RMBS Trust 2012-2 Prime RMBS
(The following was released by the rating agency)
-- National RMBS Trust 2012-2 is a securitization of prime residential mortgages originated by Advantedge Financial Services Pty Ltd., a wholly owned subsidiary of National Australia Bank Ltd.
-- We have assigned our preliminary ratings to the three classes of notes to be issued by Perpetual Trustees Victoria Ltd. as trustee for National RMBS Trust 2012-2.
-- The preliminary ratings reflect our opinion of the transaction's credit support, collateral pool, servicer, and other features, based on our current criteria and assumptions.
MELBOURNE (Standard & Poor's) Dec. 4, 2012--Standard & Poor's Ratings Services today assigned its preliminary ratings to the three classes of prime residential mortgage-backed securities (RMBS) to be issued by Perpetual Trustees Victoria Ltd. as trustee for National RMBS Trust 2012-2 (see list).
National RMBS Trust 2012-2 is a securitization of prime residential mortgages originated by Advantedge Financial Services Pty. Ltd., a wholly owned subsidiary of National Australia Bank Ltd. (NAB; AA-/Stable/A-1+).
The preliminary ratings reflect:
-- Our view of the credit risk of the underlying collateral portfolio at close.
-- Our view that the credit support is sufficient to withstand the stresses we apply. This credit support comprises mortgage insurance to 23.5% of the portfolio, which covers 100% of the face value of the loans, accrued interest, and reasonable costs of enforcement; and note subordination for the class A and class B notes.
-- Our expectation that the various mechanisms to support liquidity within the transaction, including an amortizing liquidity facility equal to 1.9% of the outstanding balance of performing loans, and principal draws, are sufficient under our stress assumptions to ensure timely payment of interest.
-- The benefit of a standby fixed-to-floating interest-rate swap to be provided by NAB to hedge the mismatch between receipts from any fixed-rate mortgage loans and the variable-rate RMBS.
-- The benefit of a currency swap to be provided by NAB to hedge the currency risk between the Australian dollar receipts from the underlying assets and the British pounds payments on the class A2 notes.
A copy of Standard & Poor's complete report for National RMBS Trust 2012-2 can be found on Global Credit Portal, Standard & Poor's Web-based credit analysis system, at "www.globalcreditportal.com ".
The issuer has not informed Standard & Poor's (Australia) Pty Limited whether the issuer is publically disclosing all relevant information about the structured finance instruments the subject of this press release or whether relevant information remains non-public.
STANDARD & POOR'S 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 Standard and Poor's 17g-7 Disclosure Report included in this credit rating report is available at "here ".
Please refer to the initial rating report for any additional regulatory disclosures that may apply to a transaction.
PRELIMINARY RATINGS ASSIGNED
Class Rating Amount (mil.) A1 AAA (sf) A$400.0 A2 AAA (sf) GBP42.25 B BBB (sf) A$25.0 C N.R. (sf) A$10.0 N.R.--Not rated.
RELATED CRITERIA AND RESEARCH
-- Counterparty Risk Framework Methodology And Assumptions, Nov. 29, 2012 -- An Overview Of Australia's Housing Market And Residential Mortgage-Backed Securities, Aug. 28, 2012 -- Australia And New Zealand Structured Finance Scenario And Sensitivity Analysis: The Effects Of The Top Five Macroeconomic Factors On Ratings, March 29, 2012 -- Criteria: Australian RMBS Rating Methodology And Assumptions, Sept. 1, 2011 -- Methodology And Assumptions For Analyzing The Cash Flow And Payment Structures Of Australian And New Zealand RMBS, June 2, 2010
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