S&P: Progress 2016-1 Trust Prime RMBS Assigned Preliminary Ratings
The preliminary 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 note subordination and lenders' mortgage insurance policies. The benefit of a fixed-to-floating interest-rate swap provided by AMP Bank Ltd. to hedge the mismatch between receipts from any fixed-rate mortgage loans and the variable-rate RMBS. Our expectation that the various mechanisms to support liquidity within the transaction, including a liquidity reserve equal to 0.85% of the invested amount of the notes, principal draws, and an excess reserve that builds from excess spread from the call option date are sufficient under our stress assumptions to ensure timely payment of interest.
A copy of S&P Global Ratings' complete report for Progress 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 not informed Standard & Poor's (Australia) Pty Ltd. whether the issuer is publically disclosing all relevant information about the structured finance instruments the subject of this rating report or whether relevant information remains non-public.