PUMA Series Preliminary Ratings As Of Aug. 1, 2017

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1 Presale: PUMA Series This presale report is based on information as of Aug. 1, The ratings shown are preliminary. This report does not constitute a recommendation to buy, hold, or sell securities. Subsequent information may result in the assignment of final ratings that differ from the preliminary ratings. Preliminary Ratings As Of Aug. 1, 2017 Class Preliminary rating Preliminary amount (A$ mil.) Minimum Credit support before credit is given to mortgage insurance (%) Minimum Credit support after credit is given to mortgage insurance (%) Credit support provided (%) A AAA (sf) B1 AA+ (sf) B2 NR 10.0 N/A N/A 0.0 Note: The rating on each class of securities is preliminary and subject to change at any time. NR--Not rated. N/A--Not applicable. Profile Expected closing date Aug. 21, 2017 Final maturity date Dec. 19, 2048 Collateral Structure type Fully amortizing, interest-only converting to amortizing and line of credit, Australian dollar floating-rate and fixed-rate loans to prime-quality borrowers, secured by mortgages over Australian residential properties Prime residential mortgage-backed pass-through securities Issuer Perpetual Ltd. as trustee for PUMA Series Servicer and Manager Security trustee and custodian Primary credit enhancement Macquarie Securitisation Ltd. Perpetual Trustee Co. Ltd. Note subordination and lenders' mortgage insurance on 100% of the loans in the portfolio Primary Credit Analyst: Mei Lee Da Silva, Melbourne (61) ; mei.dasilva@spglobal.com Secondary Contact: Luke Elder, Melbourne (61) ; luke.elder@spglobal.com See complete contact list on last page(s) JULY 31,

2 Supporting Ratings Lenders' mortgage insurers Fixed-rate swap provider Bank account provider Genworth Financial Mortgage Insurance Pty Ltd. and QBE Lenders' Mortgage Insurance Ltd. Macquarie Bank Ltd. Australia and New Zealand Banking Group Ltd. Loan Pool Statistics As Of June 6, 2017 Total number of loans 1,448 Total value of loans (A$) 499,998,966 Current maximum loan size (A$) 998,354 Average loan size (A$) 345,303 Maximum current loan-to-value (LTV) ratio (%) 88.0 Weighted-average current LTV ratio (%) 62.1 Weighted-average loan seasoning (months) 37.7 Rationale The preliminary ratings assigned by S&P Global Ratings to the prime floating-rate residential mortgage-backed securities (RMBS) to be issued by Perpetual Ltd. as trustee for PUMA Series reflect the following factors. The credit risk of the underlying collateral portfolio and the credit support provided to each class of rated notes are commensurate with the ratings assigned. Credit support is provided by subordination and lenders' mortgage insurance (LMI), and is sufficient to cover assumed losses at the applicable rating stress. The assessment of credit risk takes into account Macquarie Bank Ltd. (MBL)'s underwriting standards and approval process and Macquarie Securitisation Ltd. (MSL)'s servicing quality, which are consistent with industry-wide practices, and the support provided by the LMI policies on all the loans in the portfolio. The LMI policies on the insured loans provide 100% cover for the outstanding principal of each insured loan, accrued interest, and reasonable selling costs, excluding subordinate further advances. The rated notes can meet timely payment of interest and ultimate payment of principal under the rating stresses. Key rating factors are the level of subordination provided, the LMI cover, the interest-rate swaps, the principal draw function, the provision of a liquidity reserve, and the provision of an extraordinary expense reserve, which is funded by MBL at closing to cover extraordinary expenses and sized at a level consistent with the ratings. Our analysis is on the basis that the notes are fully redeemed by their legal final maturity date and we do not assume the notes are called at or beyond the scheduled maturity date or the call date. Our ratings also take into account the counterparty exposure to MBL as fixed-rate swap provider and to the Australia and New Zealand Banking Group Ltd. as bank account provider. MBL has provided a fixed-rate swap to hedge the mismatch between the fixed-rate receipts on the fixed-rate loans and the floating-rate interest payable on the notes. The transaction documents include downgrade language for the swap and bank account that is consistent with S&P Global Ratings' counterparty criteria. We also have factored into our ratings the legal structure of the trust, which is established as a special purpose entity and meets our criteria for insolvency remoteness. JULY 31,

3 Strengths And Weaknesses Strengths The strengths of the transaction observed in the rating analysis are: For the class A notes, the 8.0% credit support provided by the subordinated class B1 and class B2 notes exceeds the level of credit support commensurate with a 'AAA (sf)' rating, and is more than sufficient to maintain the ratings on the class A notes--assuming no deterioration in the underlying pool--should the ratings on the LMI providers be lowered or removed. Weaknesses Weaknesses identified with respect to the transaction are: About 61% of the loans in the portfolio were made to refinance existing debt. In cases when the refinancing involves debt consolidation or cash/equity take out, we apply a higher default frequency to the loans because we believe borrowings against the build-up of equity in a property increases the likelihood of a borrower defaulting. A total of 23.5% of the loans in the portfolio have interest-only periods of up to five years. We apply a higher default frequency to loans with interest-only terms to reflect the risk of payment shock at the point of conversion to principal-and-interest payments. Notable Features Issuance of class A-R and class B1-R notes The class A and class B1 notes have a scheduled maturity date on Aug. 19, If the notes are not refinanced with the issuance of class A-R and class B1-R notes (refinance notes), the notes will continue to amortize until the legal final maturity date at a 0.25% stepped-up margin. The manager can redeem all--but not some only--of the class A and/or the class B1 notes at the then-invested amount of notes outstanding, plus any accrued interest, by applying the proceeds of the refinance notes. The manager may not redeem the class B1 notes before the class A notes have been redeemed. The manager may issue class A-R notes with an initial invested amount equal to the outstanding note balance of both the class A and B1 notes in order to redeem both of these notes. However, the manager may only use the note proceeds of the class B1-R notes to repay the class B1 notes. The proceeds of the issuance of the refinance notes will firstly be applied to repay the class A notes, followed by the class B1 notes, with any remaining amount applied to the collections account. The terms and conditions of the refinance notes, including the coupon, are not currently known; therefore, the documents contain conditions precedent such as that prior notification be provided to S&P Global Ratings, the manager must determine that the issuance of the refinance notes will not cause a rating impact to any notes outstanding, and the sale proceeds must be sufficient to repay the outstanding balance and all accrued but unpaid interest of the class A and class B1 notes. No ratings have been assigned to these refinance notes at this stage because the terms and conditions of the notes are unknown. In our analysis, we have assumed that the class A and class B1 JULY 31,

4 notes are not redeemed on the scheduled maturity date and instead amortize to the final maturity date at the 0.25% step-up margin. Transaction Structure The structure of the transaction is shown in chart 1. Chart 1 JULY 31,

5 We understand that transaction counsel will lodge the relevant financing statements on the Personal Property Securities Register in connection with the security interest. Note Terms And Conditions Interest payments All classes of notes are floating-rate, pass-through securities, paying a margin over the one-month bank-bill swap rate on the invested amount of the notes. Interest payments are made sequentially to each class of notes, where coupon to the unrated class B2 bondholders ranks subordinated below reimbursement of charge offs. As discussed under "Notable Features," if the class A and B1 notes are not redeemed on the scheduled maturity date, the margins on these notes will step up by 0.25% per annum. The manager may also elect to call the notes in full on any payment date after the payment date on which the outstanding principal balance of all mortgages is less than 10% of the initial balance. There will be no change in the margin payable to noteholders if the notes are not called on the call-option date. Principal allocation Principal payments--after application of principal draws, if necessary, to cover any income shortfalls or to fund redraws--will be passed through to bond holders on a sequential-payment basis. There is no ability for principal to be passed through to noteholders on a pro-rata basis. Given the pass-through nature of the notes, the actual date on which each class of notes will be fully repaid will be determined by the actual prepayment rate experienced on the loan portfolio. In addition, the notes can be redeemed before their legal final maturity date if the issuer exercises its rights to redeem the notes at the scheduled maturity date or the call date. As a result, the risk of mortgage prepayments is borne by the noteholders. Chart 2 shows the annualized prepayment speeds of the PUMA securitized loan portfolios against the Standard & Poor's Prepayment Index (SPPI), which measures prepayment rates for Australian prime RMBS. The prepayment speeds encompass both the scheduled and unscheduled principal payments on the mortgage loans. JULY 31,

6 Chart 2 Loss allocation Losses will first be allocated to the class B2 notes until their outstanding balance is reduced to zero, followed by the class B1 notes, then class A notes. If losses are reinstated throughout the life of the transaction, then the reinstatement will occur to each class of notes in the reverse order. Reliance On Lenders' Mortgage Insurance All mortgage loans within the pool are insured by a primary LMI policy provided by a rated mortgage insurer. The LMI policies cover the outstanding mortgage loan principal, accrued interest, and any reasonable enforcement expenses on the defaulted mortgage loans. However, the LMI policies do not cover subordinate further advances. Instead, any subordinate further advances only can be funded by making a drawing under the redraw facility, the repayment of which is subordinated below the repayment of class B2 notes in the principal waterfall. The policies contain terms and conditions that allow the insurer to reduce or deny a claim in certain circumstances. If a claim is reduced and results in a loss to the trust, the issuer might be able to offset that loss by applying excess spread to cover those losses before making any distribution to beneficiaries. JULY 31,

7 Under our "Methodology For Assessing Mortgage Insurance And Similar Guarantees And Supports In Structured And Public Sector Finance And Covered Bonds" criteria, published on Dec. 7, 2014, the overall amount of credit given to LMI is the product of the stated coverage of the LMI policy, the insurer's estimated capacity to pay for a given rating scenario, and the estimated claims pay-out ratio for a given issuer. To adjust for the insurer's capacity to pay, S&P Global Ratings will look at the LMI provider's issuer credit rating. When sizing the credit support for the 'AAA (sf)' rated notes, S&P Global Ratings assumes that 45% of claims to 'A+' rated LMI providers will be denied in full. In addition, the estimated claims pay-out ratio reflects the categorization of MBL into CA1 due to a minimal level of claims adjustments, clearly documented servicing practices, and detailed procedures to adherence to LMI policies and procedures. The claims adjustment rate for CA1 is 10%. Rating-Transition Analysis Scenario analysis: Lenders' mortgage insurance The principal rating-transition risk in most Australian prime RMBS transactions is a downward transition in the rating on one or more of the lenders' mortgage insurers. We consider the rating-transition risk for the 'AAA (sf)' rating on the class A notes to be low because the credit support from the subordination of the class B1 and class B2 notes is higher than the minimum credit support before giving credit to LMI. We consider the rating-transition risk for the 'AA+ (sf)' rating on the class B1 notes to be moderate, after taking into account LMI. While the credit support below the class B1 notes provides support to cover potential yield strain that might occur late in the transaction's life, it might be insufficient to cover losses without the benefit of LMI. However, because principal repayments are made sequentially at all times to noteholders, the proportion of subordination relative to the class B1 notes will increase, while class B1 notes' reliance on the lenders' mortgage insurers will decrease due to the amortization of the loan portfolio. Assuming that there is no deterioration in the portfolio credit quality and performance, table 1 details the level of subordination that would support a 'AA+ (sf)' rating on the class B1 notes if we were to lower our rating on Genworth Financial Mortgage Insurance Pty Ltd. or QBE Lenders' Mortgage Insurance Ltd. by one notch to 'A', at the current estimated claims payout ratio. It also details the hypothetical rating on the class B1 notes if we were to remove our rating on the LMI provider today. Table 1 Rating Sensitivity To Lowering Of Rating On Lenders' Mortgage Insurer Lenders' mortgage insurers (and ratings) subject to hypothetical downgrades Subordination required to support 'AA+ (sf)' rating on class B1 notes (%) Rating transition of class B1 notes if no additional support were provided Genworth Financial Mortgage Insurance Pty Ltd.(Genworth) 'A' 1.62 AA+ QBE Lenders' Mortgage Insurance Ltd.(QBE) 'A' 1.30 AA+ JULY 31,

8 Table 1 Rating Sensitivity To Lowering Of Rating On Lenders' Mortgage Insurer (cont.) Lenders' mortgage insurers (and ratings) subject to hypothetical downgrades Subordination required to support 'AA+ (sf)' rating on class B1 notes (%) Rating transition of class B1 notes if no additional support were provided Both Genworth and QBE 'A' 1.63 AA+ No credit to LMI 3.63 A S&P Global Ratings considers that the other major factors that would drive negative rating changes in this transaction are significant deterioration in asset portfolio performance and a lowering of the rating of the fixed-rate swap provider or the bank account provider within the transaction. Scenario analysis: Property market value decline S&P Global Ratings has performed a scenario analysis to determine the effect on the ratings--assuming no credit to LMI--if property values were to fall 10% during a short period of time. After adjusting down property values by 10% and increasing LTV ratios for this impact, we applied our standard default frequency and loss-severity assumptions to arrive at the implied credit assessments in table 2. Table 2 shows the credit support and the implied credit assessment (credit only) should this scenario occur, and all else remained constant. The implied ratings are taking credit into consideration only, and do not consider any yield or liquidity issues that may be relevant at the time. Table 2 Scenario Analysis Property Market Value Decline of 10% Class Credit support at 'AAA (sf)' pre-lmi (%) Implied credit assessment pre-lmi A 7.08 aaa Credit support at 'AA+ (sf)' pre-lmi (%) Implied credit assessment pre-lmi B bbb Note: The implied credit assessment before LMI is based on subordination only. LMI--Lenders' mortgage insurance. Origination And Servicing We assess the quality of the origination, underwriting, and servicing of the loans as part of our credit analysis because it can affect the performance of the portfolio. All of the loans have been originated in the name of Perpetual Ltd. (the trustee) by MBL through a network of third-party aggregators and mortgage brokers. A centralized credit team at MBL performs the credit underwriting of the loans. MSL, the manager, is responsible for the day-to-day servicing of the loans. MSL also sets the interest rates on the loans to ensure that the trust has sufficient income to meet the obligations of the trustee as they fall due and conducts the arrears-management function for the portfolio. MSL has issued through the PUMA RMBS program since the Australian RMBS market first emerged in the mid-1990s. To date, more than A$46 billion of RMBS has been issued through the PUMA program and rated by S&P Global JULY 31,

9 Ratings (see chart 3). Chart 3 MSL measures and manages arrears using the more conservative "missed payments" basis for the majority of its loan products, and uses the "scheduled balance" basis for line-of-credit products. Under the "scheduled balance" basis, a mortgage loan is only deemed delinquent when the actual loan balance exceeds the scheduled balance. The arrears statistics for the PUMA programs will incorporate transactions that include low-documentation loans. Chart 4 compares the level of delinquencies on residential mortgage loans securitized under the PUMA RMBS programs with the aggregate level of delinquencies on loans collateralizing all rated prime RMBS transactions in Australia (prime SPIN), all rated prime full-documentation RMBS transactions (full-documentation SPIN), and all rated prime low-documentation RMBS transactions (low-documentation SPIN). Standard & Poor's Performance Index (SPIN) is a weighted-average performance index of all Australian RMBS transactions rated by S&P Global Ratings that are more than 30 days in arrears. JULY 31,

10 Chart 4 Credit Assessment The portfolio consists entirely of full-documentation prime residential mortgage loans underwritten by MBL. This is a closed pool, which means no additional loans will be assigned to the trust after the closing date. We have assessed the credit quality of the collateral to determine the minimum credit support levels for this transaction. Among the strengths that we identified are that all loans are assessed on a full-documentation basis and are well-seasoned, and the portfolio has a low weighted-average LTV ratio. The key weaknesses in the credit quality of the portfolio are the exposure to properties in nonmetropolitan areas, the proportion of loans made to refinance existing debt, and the proportion of loans with interest-only periods. In cases when the refinancing involves debt consolidation or cash/equity take out, we apply a higher default frequency to those loans because we believe borrowings against the build-up of equity in a property increases the likelihood of a borrower defaulting. We apply a higher default frequency to loans with interest-only terms to reflect the risk of payment shock at the point of conversion to principal-and-interest payments. In calculating the minimum credit support levels, we compare the characteristics of the portfolio with an archetypical JULY 31,

11 pool and apply multiples as a way to increase or decrease credit support levels to reflect higher or lower credit risk compared with the characteristics of the archetypical pool. The credit support levels comprise default frequency and loss severity. A summary of this calculation is shown in table 3. Table 4 lists the five main default frequency characteristics that have deviated from the archetypical pool. Table 3 Summary Credit Assessment Total Pool AAA (sf) AA+ (sf) (a) Default frequency (%) (b) Loss severity (%) (c) Credit support required before credit to lenders' mortgage insurance (LMI) (a) x (b) (%) (d) Credit to LMI (%) (e) Credit support required after credit to LMI (c) (d) (%) Assumptions Market value decline (%) Weighted-average recovery period (months) Interest rate through recovery period (%) Table 4 Rating Multiples Criteria Default frequency multiple (x) Loan purpose Nonmetro location Repayment method Loan-to-value ratio Seasoning Loan Pool Profile The pool as of June 6, 2017, is summarized in tables 5 and 6. The details of the pool contained in the tables were calculated after consolidating mixed (partially interest-only and amortizing) and split (partially fixed- and variable-rate) loans. Table 5 Loan Pool Characteristics Value of loans (%) Current loan size distribution (A$) Less than or equal to 100, Greater than 100,000 and less than or equal to 200, Greater than 200,000 and less than or equal to 300, Greater than 300,000 and less than or equal to 400, Greater than 400,000 and less than or equal to 600, Greater than 600,000 and less than or equal to 800, JULY 31,

12 Table 5 Loan Pool Characteristics (cont.) Value of loans (%) Greater than 800,000 and less than or equal to 1,000, Greater than 1,000,000 and less than or equal to 1,500, Current loan-to-value ratio distribution (%) Less than or equal to Greater than 50 and less than or equal to Greater than 60 and less than or equal to Greater than 70 and less than or equal to Greater than 80 and less than or equal to Greater than 90 and less than or equal to Geographic distribution (by state) New South Wales and Australian Capital Territory 46.7 Victoria 21.7 Queensland 16.1 Western Australia 11.4 South Australia 3.2 Tasmania and Northern Territory 0.9 Geographic distribution (metro/non-metro) Inner city 0.3 Metropolitan 81.3 Nonmetropolitan 18.4 Seasoning Less than or equal to six months 0.2 Six months one year years years years years 7.2 Greater than five years 7.9 Principal amortization Fully amortizing 68.0 Interest-only for up to four years, reverting to fully amortizing 23.5 Line-of-credit (fully amortizing) 1.5 Line-of-credit (interest-only for up to five years, reverting to fully amortizing) 7.0 Loan purpose Purchase exist 38.6 Refinance equity takeout 61.2 Other 0.1 Ownership type Owner-occupied JULY 31,

13 Table 5 Loan Pool Characteristics (cont.) Value of loans (%) Investment 21.1 Loan documentation Income, savings fully verified Mortgage insurers QBE Lenders' Mortgage Insurance Ltd. (QBE) 1.49 Genworth Financial Mortgage Insurance Pty Ltd. (Genworth) Cash-Flow Analysis Our cash-flow analysis shows that the transaction has sufficient income to support timely payment of interest and ultimate repayment of principal to the rated notes under various stress scenarios commensurate with the ratings assigned. Liquidity assessment If there are insufficient interest collections, then the primary liquidity support to meet senior expenses and interest on the class A and class B1 notes is provided through the ability to draw on principal. If interest collections plus principal draw is insufficient, then an amortizing liquidity reserve will be available. The amortizing liquidity reserve, equal to 1.3% of the mortgage balance at closing and amortizing to a floor of 0.13% of the note balance at closing, will be funded by note over-issuance. The reserve will be invested in authorized short-term investments when not used for liquidity purposes. Extraordinary expense reserve On the closing date of the transaction, MBL will deposit an amount of A$150,000, to be held to cover any extraordinary expenses that may arise. This reserve will be maintained and topped up to A$150,000, when possible, through the life of the transaction. Interest-rate risk Interest-rate risk between any fixed-rate mortgage loans and the floating-rate obligations on the notes is hedged via a fixed-rate swap that will be provided by MBL. In addition, MBL will provide a basis swap to hedge the basis risk associated with all variable-rate mortgage loans and the floating-rate obligations under the notes. The threshold-rate mechanism will be utilized if the basis swap terminates or if there is insufficient income from the basis swap to allow the trustee to meet its obligations. Excess spread Excess spread is applied to reinstate any current losses and carryover charge offs on notes from previous periods, as well as to cover any interest shortfalls after the application of interest collections, principal draws, and liquidity reserve. Our cash-flow analysis allows us to test the capacity of the transaction's cash flow to support the rated notes under various stress scenarios, repay principal on the notes by their respective legal final maturity dates, and to determine whether the liquidity support provided is sufficient. JULY 31,

14 The key rating stresses and assumptions modeled at each rating level are: Analyzing and modeling the structure of the transaction to include all note balances and margins, trust expenses, liquidity reserve, waterfall priority for income and principal payments, and the loss mechanism, as described in the transaction documents. Default frequency and loss severity assumed at different rating levels. Timing of defaults. Foreclosure period and time to recover sale proceeds from defaulted loans. Prepayment rates, assuming low prepayment rates to test potential yield shortfalls, as well as running high prepayment-rate scenarios to stress test the excess spread available. Modeling the cash flows of the assets based on the characteristics of the underlying collateral pool, and the margin set on all loans. Interest rates, by varying the bank-bill swap rate curves at each rating level. Arrears levels and cure periods. An assumed servicer fee of 0.35%, should it be necessary for MSL to be replaced as servicer. The threshold-rate mechanism, which includes an additional 25 basis points (bps) above the required weighted-average return on the loans, to allow the trustee to meet its payment obligations under the transaction documents. In cash-flow modeling, we recognize a step-up in the threshold rate of a total of 50 bps, with 25 bps each on months 36 and 60. Sequential principal payment structure of the notes. The transaction does not allow for pro-rata pay. Table 6 Assumed Default Curves Month Front-end default curve (%) Back-end default curve (%) Base-case default curve (%) Table 7 Assumed Constant Prepayment Rates (CPR) Transaction seasoning Low CPR scenario (% per year) Constant CPR scenario (% per year) High CPR (% per year) Up to month Month 13 to month Month 19 to month After month Note: Total CPR shown is inclusive of voluntary and involuntary (defaults) prepayments. JULY 31,

15 Legal And Counterparty Risks In our view, the issuer has features consistent with our criteria on special-purpose entities, including the restriction on objects and powers, debt limitations, independence, and separateness. The transaction will have counterparty exposure to MBL as an interest-rate swap provider and Australia and New Zealand Banking Group Ltd. as the bank account provider. The documentation of these roles requires replacement and posting of collateral if the rating of these entities falls below certain levels; these mechanisms are consistent with our counterparty rating criteria. Issuer Disclosure The issuer has not informed S&P Global Ratings (Australia) Pty Ltd. whether the issuer is publically disclosing all relevant information about the structured finance instruments that are subject to this rating report or whether relevant information remains non-public. Related Criteria Legal Criteria: Structured Finance: Asset Isolation And Special-Purpose Entity Methodology, March 29, 2017 Criteria - Structured Finance - RMBS: Methodology For Assessing Mortgage Insurance And Similar Guarantees And Supports In Structured And Public Sector Finance And Covered Bonds, Dec. 7, 2014 Criteria - Structured Finance - General: Global Framework For Assessing Operational Risk In Structured Finance Transactions, Oct. 9, 2014 Criteria - Structured Finance - RMBS: Assumptions: Australian RMBS Postcode Classification Assumptions, July 10, 2013 Criteria - Structured Finance - General: Counterparty Risk Framework Methodology And Assumptions, June 25, 2013 Criteria - Structured Finance - General: Global Derivative Agreement Criteria, June 24, 2013 General Criteria: Global Investment Criteria For Temporary Investments In Transaction Accounts, May 31, 2012 Criteria - Structured Finance - RMBS: Australian RMBS Rating Methodology And Assumptions, Sept. 1, 2011 Criteria - Structured Finance - RMBS: Methodology And Assumptions For Analyzing The Cash Flow And Payment Structures Of Australian And New Zealand RMBS, June 2, 2010 Criteria - Structured Finance - General: Standard & Poor's Revises Criteria Methodology For Servicer Risk Assessment, May 28, 2009 Related Research Australia And New Zealand Structured Finance Scenario And Sensitivity Analysis: Understanding The Effects Of Macroeconomic Factors On Credit Quality, April 17, Outlook Assumptions For The Australian Residential Mortgage Market, Jan. 30, 2017 Global Structured Finance Scenario And Sensitivity Analysis 2016: The Effects Of The Top Five Macroeconomic Factors, Dec. 16, JULY 31,

16 An Overview Of Australia's Housing Market And Residential Mortgage-Backed Securities, May 30, 2016 Industry Economic And Ratings Outlook: Australian RMBS Fundamentals Reflect A Stable Economic Environment, Sept. 30, 2014 RMBS Performance Watch: Australia, published quarterly RMBS Arrears Statistics: Australia, published monthly Australian Securitization News, published monthly S&P Global Ratings Australia Pty Ltd. holds Australian financial services licence number under the Corporations Act 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). Analytical Team Primary Credit Analyst: Mei Lee Da Silva, Melbourne (61) ; mei.dasilva@spglobal.com Secondary Contact: Luke Elder, Melbourne (61) ; luke.elder@spglobal.com JULY 31,

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