Press Release: S&P; Assigns Ratings To Sapphire V NZ Series 2013-1 Trust
3 days 1 hours 17 minutes ago - DJNF



The following is a press release from Standard & Poor's:

MELBOURNE (Standard & Poor's) Nov. 1, 2013--Standard & Poor's Ratings Services
today assigned its ratings to the five classes of subprime residential
mortgage-backed, floating-rate, pass-through notes issued by Trustees
Executors Ltd. as trustee for Sapphire V NZ Series 2013-1 Trust (see list).

The ratings reflect:
-- Our view of the credit risk of the underlying collateral portfolio,
including the fact that subject to meeting stipulated guidelines, redraws and
further advances can be funded by the trust.
-- Our view that the credit support is sufficient to withstand the
stresses we apply. This credit support comprises note subordination provided
for the class AA notes, which is equal to 42.0% of the A$67.8 million notes to
be issued; for the class AB notes, 35.3%; for the class B notes, 27.2%; for
the class C notes, 21.0%; and for the class D notes, 17.0%.
-- The turbo mechanism, such that if certain conditions are met, excess
spread, if any, will be made available to sequentially pay down the class AA
and class AB notes pari passu, followed by the class B, class C, class D, then
the class E notes.
-- The requirement to maintain a minimum weighted-average margin on the
loan portfolio that is sufficient to meet all ratable payment obligations.
-- Our expectation that the various mechanisms to support liquidity
within the transaction, including an amortizing liquidity reserve equal to
8.3% of the pool balance, subject to a floor of A$520,000, and principal
draws, are sufficient under our stress assumptions to ensure timely payment of
interest on the rated notes.

A copy of Standard & Poor's complete report for Sapphire V NZ Series 2013-1
Trust can be found on RatingsDirect, Standard & Poor's Web-based credit
analysis system, at "http://www.globalcreditportal.com".

The issuer has informed Standard & Poor's (Australia) Pty Limited that the
issuer will be publically disclosing all relevant information about the
structured finance instruments that are subject to this press release.

STANDARD & POOR'S 17G-7 DISCLOSURE REPORT
SEC Rule 17g-7 requires an NRSRO, for any report accompanying a credit rating
relating to an asset-backed security as defined in the Rule, to include a
description of the representations, warranties and enforcement mechanisms
available to investors and a description of how they differ from the
representations, warranties and enforcement mechanisms in issuances of similar
securities.

The Standard & Poor's 17g-7 Disclosure Report included in this credit rating
report is available at "http://standardandpoorsdisclosure-17g7.com/1877.pdf".

REGULATORY DISCLOSURES
Please refer to the initial rating report for any additional regulatory
disclosures that may apply to a transaction.

RATINGS ASSIGNED
Class Rating Amount (mil. NZ$)
AA AAA (sf) 39.3
AB AAA (sf) 4.5
B AA (sf) 5.5
C A (sf) 4.2
D BBB (sf) 2.7
E N.R. 10.2
F N.R. 1.4
N.R.--Not rated.

RELATED CRITERIA AND RESEARCH
-- Criteria: Counterparty Risk Framework Methodology And Assumptions,
June 25, 2013
-- Outlook Assumptions For The New Zealand Residential Mortgage Market,
May 8, 2013
-- Australia And New Zealand Structured Finance Scenario And Sensitivity
Analysis: The Effects Of The Top Five Macroeconomic Factors On Ratings, March
29, 2012
-- New Zealand RMBS Rating Methodology And Assumptions, Sept. 14, 2011
-- Criteria: Methodology And Assumptions For Analyzing The Cash Flow And
Payment Structures Of Australian And New Zealand RMBS, June 2, 2010
-- Australia And New Zealand RMBS: Analyzing Credit Quality, Feb. 21, 2007
-- RMBS Performance Watch: New Zealand, published quarterly

AUSTRALIA
Standard & Poor's (Australia) Pty. Ltd. holds Australian financial services
licence number 337565 under the Corporations Act 2001. Standard & Poor's
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: Calvin C Leong, Melbourne (61) 3-9631-2142;
calvin.leong@standardandpoors.com
Secondary Contact: Luke Elder, Melbourne (61) 3-9631 2168;
luke.elder@standardandpoors.com


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(END) Dow Jones Newswires
October 31, 2013 20:16 ET (00:16 GMT)