Announcement: Moody's: No adverse rating impact on HBS Trust 2008-1R following collateral substitution
Global Credit Research - 18 Dec 2020
Sydney, December 18, 2020 -- Moody's Investors Service announced today that the addition of AUD45.7 million of mortgage loans into HBS Trust 2008-1R on 18 December 2020 (the Substitution) would not, in and of itself and as of this point in 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 Trustee Company Limited, in its capacity as trustee of HBS Trust 2008-1R.
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The Class A Notes -- which total AUD2.2 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 63.3% and seasoning of 45.9 months.
There is also a liquidity facility of 1.25% of the outstanding principal balance of the notes, which provides liquidity support to the transaction.
The transaction is a securitization of a portfolio of Australian residential mortgages originated by Heritage 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 Substitution and does not express any opinion as to whether the Substitution 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 Irene Kleyman VP - Senior Credit Officer 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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