PUMA Series 2014-1 Class A-R And Class B1-R Notes Assigned Preliminary Ratings

MELBOURNE (S&P Global Ratings) Jan. 11, 2019--S&P Global Ratings today 
assigned its preliminary 'AAA (sf)' ratings to the class A-R and class B1-R 
residential mortgage-backed securities (RMBS) issued by Perpetual Ltd. as 
trustee for PUMA Series 2014-1.

The preliminary ratings are assigned in expectation of the refinancing of the 
existing class A and class B1 notes with the class A-R and class B1-R notes.

The assigned preliminary ratings reflect:
  • Our view of the credit risk of the underlying collateral portfolio. As of November 2018, the pool has a current balance of about A$366.0 million. The pool's current weighted-average loan-to-value ratio is 57.4% and the weighted-average seasoning is 6.6 years. All loans in the collateral pool are covered by lenders' mortgage insurance, which covers 100% of the face value of these loans, accrued interest, and reasonable costs of enforcement.
  • Our view that the credit support provided to the rated classes of notes exceeds the minimum assessed credit support at a 'AAA (sf)' level before giving credit to lenders' mortgage insurance. We expect that subordination to the rated notes will continue to increase because the capital structure does not allow any principal to be paid to the class B2 notes until all rated notes are paid in full.
  • Our expectation that the various mechanisms to support liquidity within the transaction are sufficient to ensure timely payment of interest under our rating stresses. Such mechanisms include the liquidity reserve and principal draws. In addition, an extraordinary expense reserve is available to meet extraordinary expenses.
  • The fixed- to floating-rate interest-rate swaps provided by Macquarie Bank Ltd. to hedge the mismatch between receipts from fixed-rate mortgage loans and the variable-rate RMBS.
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