Medallion Trust Series 2015-1 Class A1-R Notes Assigned Rating; Class B Notes Affirmed
MELBOURNE (S&P Global Ratings) March 23, 2020--S&P Global Ratings today assigned its rating to the class A1-R residential mortgage-backed securities (RMBS) issued by Perpetual Trustee Co. Ltd. as trustee for Medallion Trust Series 2015-1. At the same time, we affirmed our rating on the class B notes and withdrew our rating on the class A1 notes. The rating assigned to the A1-R notes follows the refinancing of the existing class A1 notes with the issuance of class A1-R notes as contemplated in the transaction documents. The ratings reflect:
- Our view of the credit risk of the underlying collateral portfolio. As of Feb. 29, 2020, the pool has a current balance of about A$659.7 million and a pool factor of 33.0%. The pool's current weighted-average loan-to-value ratio is 49.5% and the weighted-average seasoning is 7.0 years. About 11.5% of the loans in the collateral pool are covered by lenders' mortgage insurance, which covers 100% of the face value of those loans, accrued interest, and reasonable costs of enforcement.
- Our view that the credit support provided to the rated classes of notes exceeds the minimum assessed credit support at a 'AAA (sf)' level before and after giving credit to lenders mortgage insurance. We expect that subordination to the rated notes will continue to increase, as the capital structure does not allow any principal to be paid to the unrated class C notes until all rated notes are paid in full.
- Our expectation that the various mechanisms to support liquidity within the transaction, including a liquidity facility equal to A$6.0 million, which will amortize with the note balance subject to certain conditions being met, as well as principal draws, are sufficient to ensure timely payment of interest under our rating stresses. In addition, an extraordinary expense reserve is available to meet extraordinary expenses.
- The availability of a fixed- to floating-rate interest-rate swap to hedge the mismatch between receipts from fixed-rate mortgage loans and the variable-rate notes.
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RATING ASSIGNED Medallion Trust Series 2015-1 Class Rating Amount (A$) A1-R AAA (sf) 553,000,000 RATING AFFIRMED Medallion Trust Series 2015-1 Class Rating Amount (A$) B AAA (sf) 66,937,128 RATING WITHDRAWN Medallion Trust Series 2015-1 Class Rating A1 NR NR--Not rated. REGULATORY DISCLOSURES Please refer to the initial rating report for any additional regulatory disclosures that may apply to a transaction.
AUSTRALIA S&P Global Ratings Australia Pty Ltd holds Australian financial services license number 337565 under the Corporations Act 2001. S&P Global Ratings'credit ratings and related research are not intended for and must not be distributed to any person in Australia other than a wholesale client (as defined in Chapter 7 of the Corporations Act).
Primary Credit Analyst: | Fiona L Otway, Melbourne (61) 3-9631-2060; fiona.otway@spglobal.com |
Secondary Contact: | Narelle Coneybeare, Sydney (61) 2-9255-9838; narelle.coneybeare@spglobal.com |
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