August 21, 2012 / 7:27 AM / 5 years ago

TEXT-S&P assigns prelim ratings to Progress 2012-2 Trust prime RMBS

(The following statement was released by the rating agency)

Aug 21 - Standard & Poor's Ratings Services today assigned its preliminary ratings to the four classes of prime residential mortgage-backed securities (RMBS) issued by Perpetual Trustee Company Ltd. as trustee of Progress 2012-2 Trust (see list). Progress 2012-2 Trust is a securitization of prime residential mortgages originated by AMP Bank Ltd.

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 overcollateralization for each class of rated note.

-- The benefit of a fixed-to-floating interest-rate swap to be provided by AMP Bank Ltd. (A/Stable/A-1) 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 1.5% of the invested amount of the notes, and principal draws, are sufficient under our stress assumptions to ensure timely payment of interest.

PRELIMINARY RATINGS ASSIGNED

Class Rating Amount (mil. A$)

A AAA (sf) 463.66

AB AAA (sf) 22.56

B1 AA- (sf) 12.525

B2 AA- (sf) 1.255

OC N/A 1.75

RELATED CRITERIA AND RESEARCH

-- Global Structured Finance Scenario And Sensitivity Analysis: The Effects Of The Top Five Macroeconomic Factors, Nov. 4, 2011

-- Australian RMBS Rating Methodology And Assumptions, Sept. 1, 2011

-- Counterparty And Supporting Obligations Methodology And Assumptions, Dec. 6, 2010

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