OREANDA-NEWS. S&P Global Ratings today assigned its preliminary ratings to Ocwen Master Advance Receivables Trust's $500 million advance receivables-backed notes series 2016-T1 and 2016-T2 (see list).

The note issuance is a servicer advance transaction backed by servicer advance reimbursements and accrued and unpaid servicing fee reimbursements.

The preliminary ratings are based on information as of Aug. 1, 2016. Subsequent information may result in the assignment of final ratings that differ from the preliminary ratings.

The preliminary ratings reflect:The strong likelihood of reimbursement of servicer advance receivables given the priority of such reimbursement payments;The transaction's revolving period, during which collections or draws on any outstanding variable-funding notes (VFNs) that are also in a revolving period may be used to fund additional advance receivables, and the specified eligibility requirements, collateral value exclusions, credit enhancement test (the collateral test), and amortization triggers intended to maintain pool quality and credit enhancement during this period;The transaction's use of pre-determined, rating category-specific advance rates for each receivable type in the pool that discount the receivables, which are non-interest bearing, to satisfy the interest obligations on the notes, as well as provide for dynamic overcollateralization;The projected timing of reimbursements of the servicer advance receivables, which, in the 'AAA', 'AA', and 'A' rating scenarios, reflects our assumption that the servicer would be replaced and while in the 'BBB' scenario, reflects the servicer's historical reimbursement experience;The credit enhancement in the form of overcollateralization, subordination, and the series reserve accounts;The timely interest and full principal payments made under our stressed cash flow modeling scenarios consistent with the preliminary ratings; andThe transaction's sequential turbo payment structure that applies during any full amortization period.