MELBOURNE (S&P Global Ratings) May 15, 2023--S&P Global Ratings today affirmed its 'AAA (sf)' rating on the class A residential mortgage-backed securities (RMBS) issued by Perpetual Corporate Trust Ltd. as trustee for QPCU Heroes Trust Repo Series No.1. QPCU Heroes Trust Repo Series No.1 is a securitization of prime residential mortgages originated by QPCU Ltd. (trading as QBANK).
The rating affirmation follows the issuance of an additional A$32.13 million of class A notes, bringing the aggregate amount of class A and class B notes issued to A$214 million. The proceeds from the note issuance will be used to fund the acquisition of additional loans, as contemplated in the transaction structure.
The rating affirmation reflects our view of the underlying pool as well as the level of credit support provided to the class A notes. Credit support is in the form of class B notes subordination and lenders' mortgage insurance on about 29.6% of the pool of mortgages and exceeds the level of credit support commensurate with a 'AAA (sf)' rating level.
As of April 21, 2023, the pool's weighted-average current loan-to-value ratio is 57.3% and weighted-average loan seasoning is 63 months.
A total of 95.3% of properties in the pool are located in Queensland and 37.3% of properties are in nonmetropolitan locations. We view clustered geographic distributions as being at greater risk of being adversely affected by localized economic downturn and have increased the default frequency of the pool to account for these concentrations.
Arrears have consistently tracked below the Standard & Poor's Performance Index (SPIN) for prime loans.
Our assessment of credit risk also takes into account QBANK's underwriting standards, approval processes, and servicing quality, which are consistent with industry-wide practices.
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- 2023 Outlook Assumptions For The Australian RMBS Market, Jan. 6, 2023
- An Overview Of Australia’s Housing Market And Residential Mortgage-Backed Securities, Nov. 28, 2022
- How Will The 2022 Floods Affect The Australian RMBS Sector? March 7, 2022
- ESG Industry Report Card: Residential Mortgage-Backed Securities, March 31, 2021
- Australian Prime And Nonconforming RMBS: What's The Difference? Nov. 17, 2019
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- RMBS Performance Watch: Australia, published quarterly
- RMBS Arrears Statistics: Australia, published monthly
Please refer to the initial rating report for any additional regulatory disclosures that may apply to a transaction.
S&P Global Ratings Australia Pty Ltd holds Australian financial services license number 337565 under the Corporations Act 2001. S&P Global Ratings' credit ratings and related research are not intended for and must not be distributed to any person in Australia other than a wholesale client (as defined in Chapter 7 of the Corporations Act).
|Primary Credit Analyst:||Edwin Tanuwidjaja, Melbourne +61 3 9631 2105;|
|Secondary Contact:||Alisha Treacy, Melbourne + 61 3 9631 2182;|
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