OREANDA-NEWS. S&P Global Ratings today assigned its preliminary ratings to seven classes of prime residential mortgage-backed securities (RMBS) to be issued by Perpetual Corporate Trust Ltd. as trustee for Triton Trust No.7 Bond Series 2016-1 (see list).

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 mortgage insurance covering 84.5% of the loans in the portfolio, accrued interest, and reasonable costs of enforcement, as well as note subordination for all rated notes. Our expectation that the various mechanisms to support liquidity within the transaction, including an amortizing liquidity facility equal to 1.2% of the invested amount of all notes, principal draws, and a loss reserve that builds from excess spread, 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 Columbus Capital Pty Ltd., available to meet extraordinary expenses. The reserve will be topped up via excess spread if drawn. The benefit of a fixed-to-floating interest-rate swap provided by NationalAustralia Bank Ltd. to hedge the mismatch between receipts from any fixed-rate mortgage loans and the variable-rate RMBS.