Announcement: Moody's: No rating impact on PCU 2009-1 Trust after uplift
Global Credit Research - 13 Aug 2020
Sydney, August 13, 2020 -- Moody's Investors Service has announced that the issuance of additional Class A and Class B Notes, following a purchase of AUD371.7 million of mortgage loans by PCU 2009-1 Trust on 13 August 2020 (the Uplift), will not in and of itself and as of this time, result in the downgrade or withdrawal of the rating on the Class A Notes issued by Perpetual Trustee Company Limited, in its capacity as trustee of PCU 2009-1 Trust.
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Moody's has determined that the Uplift, in and of itself and at this time, will not result in the downgrade or withdrawal of the rating on the Class A Notes.
Moody's opinion addresses only the credit impact associated with the Uplift, and Moody's is not expressing any opinion as to whether the Uplift has, or could have, other non-credit related effects that may have a detrimental impact on the interests of note holders.
The Class A Notes -- which total AUD487.8 million after the uplift -- are rated Aaa (sf). The Notes benefit from the 8.3% subordination provided by the unrated Class B Notes.
The revised pool has a weighted-average current loan-to-value ratio of 60.5% and seasoning of 40.7 months.
The transaction is also supported by a liquidity reserve which is equivalent to 2.0% of the outstanding principal balance of the notes.
The transaction represents a securitization of a portfolio of Australian prime residential mortgages originated by Police Bank Ltd.
The principal methodology used in this rating was Moody's Approach to Rating RMBS Using the MILAN Framework published in May 2020 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBS_1228742. Alternatively, please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.
This publication does not announce a credit rating action. For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page on www.moodys.com for the most updated credit rating action information and rating history.
Alena Chen VP - Senior Credit Officer Structured Finance Group Moody's Investors Service Pty. Ltd. Level 10 1 O'Connell Street Sydney NSW 2000 Australia JOURNALISTS: 61 2 9270 8141 Client Service: 852 3551 3077 Ilya Serov Associate Managing Director Structured Finance Group JOURNALISTS: 61 2 9270 8141 Client Service: 852 3551 3077 Releasing Office: Moody's Investors Service Pty. Ltd. Level 10 1 O'Connell Street Sydney NSW 2000 Australia JOURNALISTS: 61 2 9270 8141 Client Service: 852 3551 3077
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