articles Ratings /ratings/en/research/articles/231115-mtf-warehouse-trust-no-1-ratings-assigned-to-four-notes-one-affirmed-12914062 content esgSubNav
In This List

MTF Warehouse Trust No.1 Ratings Assigned To Four Notes; One Affirmed


China Securitization: ABS And RMBS Tracker October 2023


Table Of Contents: S&P Global Ratings Credit Rating Models


RESIMAC Triomphe Trust - Warehouse Series No.5 Class A1 Notes Rating Affirmed


Sustainability Insights: Climate Transition Risk: Historical Greenhouse Gas Emissions Trends For Global Industries

MTF Warehouse Trust No.1 Ratings Assigned To Four Notes; One Affirmed

MELBOURNE (S&P Global Ratings) Nov. 15, 2023--S&P Global Ratings assigned its ratings to four classes of notes issued by Trustees Executors Ltd. as trustee of MTF Warehouse Trust No.1. At the same time, we affirmed our rating on the class A notes (previously named Warehouse notes). The notes are backed by consumer credit and finance lease contacts originated by New Zealand-based Motor Trade Finance Ltd.

The assigned ratings follow the execution of an amending deed that introduces multiple changes, including the issuance of class B, class C, class D, and class E notes with associated minimum required credit enhancement factors. Changes to portfolio parameters include increasing the maximum percentage of receivables with a principal balance greater than NZ$70,000 to 10% from 7.0%, increasing the maximum percentage of receivables with an original loan term greater than 48 months to 40% from 35%, and decreasing the maximum percentage of receivables deemed "high risk" to 10% from 15%. The maximum receivable principal balance has also been increased to NZ$200,000 from NZ$100,000.

The liquidity reserve funded via note overissuance has been replaced with a liquidity facility provided by Westpac New Zealand Ltd.

Our ratings reflect the following factors:

  • The credit risk of the underlying collateral portfolio and the credit support provided for the rated notes in the form of subordination and excess spread, which is commensurate with that credit risk.
  • Documented eligibility criteria, portfolio parameters, and amortization triggers govern the composition of the collateral pool.
  • That all contract payments, including the residual or balloon payments, are an obligation of the borrower. As a result, the trust is not exposed to any market-value risk associated with the sale of the motor vehicles (on performing receivables), which is a risk that could be associated with other products, such as operating leases.
  • The issuer's capacity to pay interest to the rated note holders in full on each interest payment date, and to repay principal in full no later than the final maturity date, under rating stresses commensurate with the ratings assigned. Timely payment of senior expenses and rated note interest is supported by the use of principal collections and a liquidity facility. Before an amortization event, the liquidity facility is sized at 1.0% of the aggregate commitment of class A, class B, class C, class D, and class E notes, subject to a floor of NZ$100,000. Following an amortization event, the liquidity facility is sized at 1.0% of the invested amount of the class A, class B, class C, class D, class E, and subordinated note, subject to a floor of NZ$100,000.
  • The legal structure of the issuer, which is established as a special-purpose entity and meets our criteria for insolvency remoteness.
  • Our ratings take into account the counterparty support provided by Bank of New Zealand as bank account provider, Westpac New Zealand Ltd. as liquidity facility provider, as well as Commonwealth Bank of Australia and Westpac Banking Corp. as interest-rate swap providers. Fixed- to floating-rate interest-rate swaps are provided to hedge the mismatch between the fixed-rate payments on the receivables and the floating-rate interest payable on the notes. The transaction documents for the swap and bank accounts include downgrade language consistent with our "Counterparty Risk Framework: Methodology And Assumptions" criteria, published on March 8, 2019, which requires the replacement of the counterparty or other remedy, should its rating fall below the applicable rating.

A copy of S&P Global Ratings' updated report for MTF Warehouse Trust No.1 can be found on RatingsDirect, S&P Global Ratings' web-based credit analysis system, at

Related Criteria

Related Research

Ratings Assigned

MTF Warehouse Trust No.1
  • Class B, up to NZ$20.14 million: AA (sf)
  • Class C, up to NZ$19.54 million: A (sf)
  • Class D, up to NZ$13.62 million: BBB (sf)
  • Class E, up to NZ$10.07 million: BB (sf)

Rating Affirmed

MTF Warehouse Trust No.1
  • Class A (previously named Warehouse), up to NZ$520.0 million: AAA (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:Leslie J Wong, Melbourne + (61) 3-9631-2932;
Secondary Contact:Elizabeth A Steenson, Melbourne + 61 3 9631 2162;

No content (including ratings, credit-related analyses and data, valuations, model, software, or other application or output therefrom) or any part thereof (Content) may be modified, reverse engineered, reproduced, or distributed in any form by any means, or stored in a database or retrieval system, without the prior written permission of Standard & Poor’s Financial Services LLC or its affiliates (collectively, S&P). The Content shall not be used for any unlawful or unauthorized purposes. S&P and any third-party providers, as well as their directors, officers, shareholders, employees, or agents (collectively S&P Parties) do not guarantee the accuracy, completeness, timeliness, or availability of the Content. S&P Parties are not responsible for any errors or omissions (negligent or otherwise), regardless of the cause, for the results obtained from the use of the Content, or for the security or maintenance of any data input by the user. The Content is provided on an “as is” basis. S&P PARTIES DISCLAIM ANY AND ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE, FREEDOM FROM BUGS, SOFTWARE ERRORS OR DEFECTS, THAT THE CONTENT’S FUNCTIONING WILL BE UNINTERRUPTED, OR THAT THE CONTENT WILL OPERATE WITH ANY SOFTWARE OR HARDWARE CONFIGURATION. In no event shall S&P Parties be liable to any party for any direct, indirect, incidental, exemplary, compensatory, punitive, special or consequential damages, costs, expenses, legal fees, or losses (including, without limitation, lost income or lost profits and opportunity costs or losses caused by negligence) in connection with any use of the Content even if advised of the possibility of such damages.

Credit-related and other analyses, including ratings, and statements in the Content are statements of opinion as of the date they are expressed and not statements of fact. S&P’s opinions, analyses, and rating acknowledgment decisions (described below) are not recommendations to purchase, hold, or sell any securities or to make any investment decisions, and do not address the suitability of any security. S&P assumes no obligation to update the Content following publication in any form or format. The Content should not be relied on and is not a substitute for the skill, judgment, and experience of the user, its management, employees, advisors, and/or clients when making investment and other business decisions. S&P does not act as a fiduciary or an investment advisor except where registered as such. While S&P has obtained information from sources it believes to be reliable, S&P does not perform an audit and undertakes no duty of due diligence or independent verification of any information it receives. Rating-related publications may be published for a variety of reasons that are not necessarily dependent on action by rating committees, including, but not limited to, the publication of a periodic update on a credit rating and related analyses.

To the extent that regulatory authorities allow a rating agency to acknowledge in one jurisdiction a rating issued in another jurisdiction for certain regulatory purposes, S&P reserves the right to assign, withdraw, or suspend such acknowledgement at any time and in its sole discretion. S&P Parties disclaim any duty whatsoever arising out of the assignment, withdrawal, or suspension of an acknowledgment as well as any liability for any damage alleged to have been suffered on account thereof.

S&P keeps certain activities of its business units separate from each other in order to preserve the independence and objectivity of their respective activities. As a result, certain business units of S&P may have information that is not available to other S&P business units. S&P has established policies and procedures to maintain the confidentiality of certain nonpublic information received in connection with each analytical process.

S&P may receive compensation for its ratings and certain analyses, normally from issuers or underwriters of securities or from obligors. S&P reserves the right to disseminate its opinions and analyses. S&P's public ratings and analyses are made available on its Web sites, (free of charge), and (subscription), and may be distributed through other means, including via S&P publications and third-party redistributors. Additional information about our ratings fees is available at

Register with S&P Global Ratings

Register now to access exclusive content, events, tools, and more.

Go Back