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Zip Master Trust - Series 2021-2 And Series 2023-1 Ratings Affirmed

MELBOURNE (S&P Global Ratings) Nov. 9, 2023--S&P Global Ratings today affirmed its ratings on six classes of notes issued by Perpetual Corporate Trust Ltd. as trustee of Zip Master Trust - Series 2021-2 and seven classes of notes issued by Perpetual Corporate Trust as trustee of Zip Master Trust - Series 2023-1 (see list).

The rating actions on Series 2021-2, which follow the restructure of the transaction and issuance of additional class G notes, reflect our updated view of the performance of the underlying pool of receivables held by Zip Master Trust and the credit support and various liquidity support mechanisms available to each rated class of notes. The rating actions reflect a decrease to zero from A$24.375 million in the loss reserve.

At the same time, we affirmed our ratings on Series 2023-1, reflecting our updated view of the performance of the pool of receivables.

Following our review of the latest available historical payment, purchase, charge-off, yield, and dilution rates of Zip Master Trust, we updated our base-case assumptions in line with our global consumer receivables criteria, taking into consideration macroeconomic conditions and industry trends. The revision reflects our view that Zip Master Trust has experienced a decreasing dilution rate, relatively higher adjusted yield, and reduced loss volatility.

Series 2021-2 and Series 2023-1 remain in a revolving period. Using our revised base-case assumptions, we performed a cash-flow analysis, assuming series rapid amortization. Because there are no documented limits on the proportion of Zip Pay and Zip Money in the overall portfolio securitized, we performed further cash-flow analysis, assuming a shift in the portfolio product composition. Under such scenarios, the available credit enhancement for the rated classes of notes from each series is sufficient to support the various stresses commensurate with our respective current ratings. Both transactions' cash flows and various mechanisms support the timely payment of interest and ultimate payment of principal to the rated classes of notes from each series under our rating stress assumptions.

Our analysis also incorporates the following base-case assumptions:

  • Portfolio composition remains at 45% Zip Money and 55% Zip Pay.
  • Adjusted yield rate raised to 10.48% from 10.03%.
  • Charge-off rate lowered to 5.05% from 5.10%.
  • Payment rate remains at 15.53%.
  • Dilutions rate lowered to 0.56% from 0.71%.

Related Criteria

Related Research

Ratings Affirmed

Zip Master Trust - Series 2021-2
  • Class A: AAA (sf)
  • Class B: AA (sf)
  • Class C: A (sf)
  • Class D: BBB (sf)
  • Class E: BB (sf)
  • Class F: B (sf)
Zip Master Trust - Series 2023-1
  • Class A1: AAA (sf)
  • Class A2: AAA (sf)
  • Class B: AA (sf)
  • Class C: A (sf)
  • Class D: BBB (sf)
  • Class E: BB (sf)
  • Class F: B (sf)


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:Paul Prajogo, Melbourne + 61 3 9631 2069;
Secondary Contact:Kate J Thomson, Melbourne + 61 3 9631 2104;

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