S&P: TORRENS Series 2016-1 Trust Prime RMBS Assigned Ratings
The ratings reflect:Our view of the credit risk of the underlying collateral portfolio, including the fact 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 mortgage insurance covering 25.9% of the loans in the portfolio, accrued interest, and reasonable costs of enforcement, as well as note subordination for the class A and class B notes. Our expectation that the various mechanisms to support liquidity within the transaction, including a liquidity facility equal to 1.5% of the aggregate principal outstanding of all loans; and the principal draw function are sufficient under our stress assumptions to ensure timely payment of interest. The extraordinary expense reserve of A$150,000, funded from day one by Bendigo and Adelaide Bank Ltd., available to meet extraordinary expenses. The reserve will be topped up via excess spread if drawn. The benefit of a standby fixed-to-floating interest-rate swap provided by National Australia Bank Ltd. to hedge the mismatch between receipts from any fixed-rate mortgage loans and the variable-rate RMBS.
A copy of S&P Global Ratings' complete report for TORRENS Series 2016-1 Trust can be found on RatingsDirect, S&P Global Ratings' Web-based credit analysis system, at http://www. globalcreditportal. com.
The issuer has informed Standard & Poor's (Australia) Pty Limited that the issuer will be publically disclosing all relevant information about the structured finance instruments that are subject to this rating report.