Announcement: Moody's: No adverse rating impact on EdSec Funding Trust No. 1 Repo Series No. 1 following uplift
Sydney, December 14, 2020 -- Moody's Investors Service announced today that the addition of AUD696 million of mortgage loans to EdSec Funding Trust No. 1 Repo Series No. 1 on 14 December 2020 (the Uplift) would not, in and of itself and as of this time, result in a reduction, placement on review for possible downgrade or withdrawal of Moody's current rating of the Class A notes issued by Perpetual Corporate Trust Limited, in its capacity as trustee of EdSec Funding Trust No. 1 Repo Series No. 1.
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The Class A notes - which total AUD2.25 billion - are rated Aaa (sf). The notes benefit from the 7.5% subordination provided by the unrated Class B notes.
The revised pool has a weighted-average current loan-to-value ratio of 62% and seasoning of 30 months.
There is also a liquidity facility of 1.7% of the outstanding principal balance of the notes, with a floor of AUD375,000, which provides liquidity support to the transaction.
The transaction is a securitization of a portfolio of Australian prime mortgage loans originated by Teachers Mutual Bank Limited.
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.
Moody's opinion addresses only the credit impact associated with the Uplift, and does not express 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 noteholders and/or counterparties.
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 Financial Institutions 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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