Bangkok--15 May--Standard & Poor's
MELBOURNE (Standard & Poor's) May 15, 2013--Standard & Poor's Ratings Services today assigned its ratings to two of the three classes of residential mortgage-backed securities (RMBS) issued by BNY Trust Co. of Australia Ltd. in respect of Illawarra Series 2013-1 RMBS Trust (see list). Illawarra Series 2013-1 RMBS Trust is a securitization of prime residential mortgages originated by IMB Ltd.
The ratings reflect:
- Our view of the credit risk of the underlying collateral portfolio.
- Our view that the credit support is sufficient to withstand the stresses we apply. This credit support comprises mortgage insurance covering 100% of the face value of all loans, accrued interest, and reasonable costs of enforcement; and note subordination for the class A and class AB notes.
- Our expectation that the various mechanisms to support liquidity within the transaction, including an amortizing liquidity facility equal to 1.5% of the initial invested amount of all notes, and principal draws, both of which are only available for the rated notes, are sufficient under our stress assumptions to ensure timely payment of interest on the rated notes.
- The benefit of a fixed-to-floating interest-rate swap to be provided by Westpac Banking Corp., to hedge the mismatch between receipts from any fixed-rate mortgage loans and the variable-rate RMBS.
A copy of Standard & Poor's complete report for Illawarra Series 2013-1 RMBS Trust can be found on Global Credit Portal, Standard & Poor's Web-based credit analysis system, at http://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.