Potential Rating Migrations of Individual Senior and Mezzanine Notes in Australian Prime RMBS

International Structured Finance
Australia
Special Report
Potential Rating Migrations of Individual Senior
and Mezzanine Notes in Australian Prime RMBS
Table of Contents
− Overview
− Findings
− Appendix 1
− Appendix 2
− Appendix 3
OVERVIEW
This special report addresses the need for investors of senior or mezzanine notes in Prime
Australian RMBS deals to know both the potential for ratings migration and the level of
migration due to a ratings downgrade of one or both of the two dominant providers of
lenders mortgage insurance (LMI) in the Australian market – Genworth (A1) and QBE LMI
(Aa3).
The charts below reveal that senior and mezzanine notes are resilient to Genworth and QBE
LMI downgrades.
Our analysis shows that only one note is a candidate for potential downgrade if QBE LMI
were downgraded three notches, and only four notes would be candidates for potential
downgrade if Genworth were downgraded three notches.
And importantly, under no circumstances, would any note be a potential candidate for
downgrade to below investment grade.
In fact, only one mezzanine note currently rated Aa1 could be downgraded to the Baa range
if both Genworth and QBE LMI were downgraded to below investment grade.
This report is a continuation of the special report, “Impact of LMI Rating Migrations on
Individual Senior and Mezzanine Notes of Australian Prime RMBS,” August 20091.
For an understanding on how Moody’s assigns benefit for LMI, refer to the special report,
“The Impact of Mortgage Insurance On The Subordination Levels of Australian RMBS, May
2000”.
FINDINGS
There were 150 Prime Australian RMBS deals analysed for this report, and consisting of 260
senior and mezzanine notes. Of these, 64 notes have their current ratings dependent on the
benefit Moody’s places on the mortgage insurance policies provided by Genworth and QBE
LMI
Appendix 1 illustrates how many of these notes are candidates for potential downgrade --
under all possible Genworth and QBE rating combinations.
Appendix 2 illustrates, for each of the 64 notes mentioned above, the indicative ratings
levels that a note would obtain under all possible ratings combinations for Genworth and
QBE.
The results for each note are tabulated in a standard format for easy comparison.
Author(s)
Arthur Karabatsos
Vice President – Senior Analyst
+61 2 9270-8160
Arthur.Karabatsos@moodys.com
Ryan Lu, CFA
Assistant Vice President – Analyst
+61 2 9270-8104
Ryan.Lu@moodys.com
Additional Contacts
Jacob Ezrakhovich
Senior Associate
+61 2 9270-8124
Jacob.Ezrakhovich@moodys.com
Investor Liaison
Josephine Brodsky
Associate Director – Regional Account
Manager
+61 2 9270-8117
Josephine.Brodsky@moodys.com
Client Service Desk
Sydney: +61 2 9270-8100
SydneyClientDesk@moodys.com
Monitoring
monitor.sydney@moodys.com
Website
www.moodys.com
1
The previous report only examined the likelihood of a downgrade of senior and mezzanine notes, whereas this report also examines the
potential rating.
28 September 2009

2 • Moody’s Investors Service Potential Rating Migrations of Individual Senior and
Mezzanine Notes in Australian Prime RMBS
Broadly speaking, the indicative ratings levels that a note will obtain are dependent on
Aaa credit enhancement requirements, subordination levels and the benefit given to LMI.
For an explanation on how Moody’s assigns benefit for LMI, refer to the special report,
“The Impact of Mortgage Insurance On The Subordination Levels of Australian RMBS,
May 2000”. The ratings of the junior notes is highly correlated to the rating of the lowest
rated mortgage insurer and not reported upon in this report.
Examination of Appendix 2 reveals that even if both mortgage insurers were downgraded
to below investment grade (below Baa3 and hence no value given by Moody’s to their
mortgage insurance policies), then:
− Of the 47 of senior notes currently rated Aaa:
− 32 could be downgraded to Aa (Aa1, Aa2, Aa3) levels; and
− 15 could be downgraded to A (A1, A2, A3) levels.
Similarly
− Of the 17 of mezzanine notes currently rated Aa1:
− 7 could remain in the Aa (Aa1, Aa2, Aa3) levels
− 9 could be downgraded to the A (A1, A2, A3) levels; and
− 1 could be downgraded to Baa (Baa1, Baa2, Baa3) levels
The one note rated Aa1 -- that could be downgraded to Baa levels -- is the Resimac
Triomphe Trust Warehouse Series No.1, Class AB note. This is because it is a revolving
warehouse (ability to add new loans to the portfolio), whose required credit support is
based on a worst case portfolio scenario, based in turn on pool parameters and eligibility
criteria, such as maximum allowable loan to value ratios and loan sizes.
However, if the required credit support were based on current portfolio composition /
characteristics -- and if both mortgage insurers were downgraded to below investment
grade -- then the note would be a potential candidate for downgrade to only A levels.
The results for each note were categorised into a ratings bucket, e.g. Aa rather than say,
Aa1, Aa2 or Aa3, to emphasis the fact that these are indicative ratings only, and that
ultimate rating decisions are subject to a Moody’s rating committee, based on both
quantitative and qualitative factors prevailing at the time.
Appendix 3 lists all of the 196 (260 – 64) notes whose ratings are independent of the
benefit Moody’s places on the insurance provided by Genworth and QBE.
All of the above analysis was conducted using performance data as a June 2009.
RELATED RESEARCH
www.moodys.com.au
For a more detailed explanation of Moody’s approach to this type of transaction as well
as similar transactions please refer to the following reports:
Performance Review Report
− Australian RMBS Performance Review: Q1 2009 (SF166116)
− Australian RMBS Performance Review: Q4 2008 (SF156630)
Special Report
− Impact of LMI Rating Migrations on Australian Aaa Prime RMBS, June 2009
(SF167234)
− Asia Pacific Structured Finance Recap: Summary of Outlooks for the next 12-18
Months Across Asset Classes, September 2008 (SF141256)
− Trends in Australian RMBS Collateral: 2004 – 2007, July 2008 (SF131305)
Rating Methodology
− AU-MILAN – The Scoring Formula Revisited – Moody's Individual Loan Analysis for
Australian RMBS, August 2003 (SF25565)
− The Impact of Mortgage Insurance on the Subordination Level of Australian MBS,
May 2000 (SF8895)
To access any of these reports, click on the entry above. Note that these references are current as of the date of
publication of this report and that more recent reports may be available. All research may not be available to all clients.
Moody's publishes a weekly summary of structured finance credit, ratings and
methodologies, available to all registered users of our website, at
www.moodys.com/SFQuickCheck.

APPENDIX 1 – NOTES DEPENDENT ON GENWORTH AND QBE LMI
The table below illustrates how many senior and mezzanine notes are candidates for potential downgrade under all possible
Genworth and QBE rating combinations. It reveals that there are 64 notes whose current ratings are dependent on Genworth (A1)
and QBE LMI (Aa3), but as long as their ratings remain A1 of A3 respectively, or better (grey shaded area in the table), then their
ratings are unaffected.
Genworth Ratings (A1)
Aaa Aa1 Aa2 Aa3 A1 A2 A3 Baa1 Baa2 Baa3 Below Baa3
Aaa 3 3 3 8 13 18
Aa1 3 3 3 9 14 19
Aa2 3 3 3 9 15 24
Aa3 3 3 4 10 18 29
A1 3 4 4 14 23 31
A2 3 4 7 19 27 34
A3 1 1 1 1 1 5 7 14 21 32 40
Baa1 6 6 6 6 7 12 14 21 31 39 48
Baa2 6 6 6 8 8 15 19 23 33 44 52
Baa3 8 8 9 11 14 21 24 28 40 51 59
QBELMIRatings(Aa3)
Below Baa3 10 10 11 14 18 23 26 31 42 61 64
Similarly, reading off the table, if Genworth were downgraded 1 notch to A2, while QBE remained at Aa3, then 3 notes could be
downgraded.
If Genworth were downgraded to A3 or Baa1, then an additional note (4 in total) could be downgraded.
The relatively number of notes affected by a ratings downgrade of Genworth and or QBE LMI can be attributed to two factors.
Since the credit crisis in late 2007, most Australian Prime RMBS senior notes have been structured such that their Aaa ratings
are independent of the ratings of their mortgage insurer(s).
Additionally, notes issued prior to the credit crisis -- although not initially structured to be independent of the mortgage insurer(s)
– have now become so because of the increase in subordination, due in turn to their typically sequential pay structures and the
benefits of seasoning.
Moody’s expects the number of LMI independent senior and mezzanine note to increase as subordination levels increase (due to
the sequential paydown nature of the notes) and Aaa credit requirements decrease (due to declining loan to value ratios
because of the amortisation nature of the loans).
Potential Rating Migrations of Individual Senior and Moody’s Investors Service • 3

APPENDIX 2 – INDICATIVE RATINGS OF NOTES DEPENDENT LMI
Below listed in alphabetical order are notes whose current ratings are dependent on the benefit Moody’s places on the mortgage
insurance provided by Genworth (A1) and QBE LMI (Aa3). The results are displayed in a standard format to allow for easy
comparison.
The shaded areas of the table represent Genworth and QBE LMI rating combinations under which an individual note would not be
considered a candidate for possible downgrade.
Conversely, the unshaded areas represent Genworth and QBE LMI rating combinations under which a note could become a
candiate for downgrade and display indicative rating levels.
The indicative rating levels are categorised into rating buckets e.g. Aa rather than say, Aa1, Aa2 or Aa3 to emphasis the fact
that these are indicative ratings only and that ultimate rating decisions are subject to a Moody’s rating committee, based on both
quantitative and qualitative factors prevailing at the time.
Apollo Series 2007-1E Trust Class 1A (Aaa)
Aaa
Aa1
Aa2
Aa3
A1
A2
A3
Baa1
Baa2
Baa3 Aa Aa Aa Aa Aa Aa Aa Aa Aa Aa Aa
QBELMIRatings(Aa3)
Below Baa3 Aa Aa Aa Aa Aa Aa Aa Aa Aa Aa Aa
Apollo Series 2007-1E Trust Class 2A (Aaa)
Aaa
Aa1
Aa2
Aa3
A1
A2
A3
Baa1
Baa2
QBELMIRatings(Aa3)
Below Baa3 Aa Aa Aa Aa Aa Aa Aa Aa Aa Aa Aa

Challenger Millennium Series 2007-1E Trust Class A1 (Aaa)
Aaa
Aa1
Aa2
Aa3
A1
A2
A3
Baa1
Baa2
Baa3 Aa
QBELMIRatings(Aa3)
Below Baa3 Aa Aa
Challenger Millennium Series 2007-1E Trust Class A2a (Aaa)
Aaa
Aa1
Aa2
Aa3
A1
A2
A3
Baa1
Baa2
Baa3 Aa
QBELMIRatings(Aa3)
Below Baa3 Aa Aa
Challenger Millennium Series 2007-1E Trust Class AB (Aa1)
Aaa
Aa1
Aa2
Aa3
A1
A2 Aa
A3 Aa Aa
Baa1 Aa Aa Aa
Baa2 Aa Aa Aa Aa
Baa3 Aa Aa Aa Aa A
QBELMIRatings(Aa3)
Below Baa3 Aa Aa Aa A A

Challenger Millennium Series 2007-1E Trust Class A2b (Aaa)
Aaa
Aa1
Aa2
Aa3
A1
A2
A3
Baa1
Baa2
Baa3 Aa
QBELMIRatings(Aa3)
Below Baa3 Aa Aa
Challenger Millennium Series 2007-2L Trust Class A (Aaa)
Aaa
Aa1
Aa2
Aa3
A1
A2
A3
Baa1
Baa2
Baa3 Aa
QBELMIRatings(Aa3)
Below Baa3 Aa Aa
Challenger Millennium Series 2007-2L Trust Class AB (Aa1)
Aaa Aa
Aa1 Aa
Aa2 Aa
Aa3 Aa Aa
A1 Aa Aa Aa
A2 Aa Aa Aa
A3 Aa Aa Aa A
Baa1 Aa Aa Aa A
Baa2 Aa Aa Aa A A
Baa3 Aa Aa Aa Aa A A
QBELMIRatings(Aa3)
Below Baa3 Aa Aa Aa A A A

Challenger Millennium Series 2008-1 Trust Class AB (Aa1)
Aaa
Aa1
Aa2
Aa3
A1
A2
A3 Aa Aa
Baa1 Aa Aa Aa Aa
Baa2 Aa Aa Aa Aa Aa Aa
Baa3 Aa Aa Aa Aa Aa Aa A A
QBELMIRatings(Aa3)
Below Baa3 Aa Aa Aa Aa Aa Aa Aa A A A A
FirstMac Mortgage Funding Trust Series 1-2007 Class AB Notes (Aa1)
Aaa
Aa1
Aa2
Aa3
A1
A2
A3
Baa1
Baa2 Aa
Baa3 Aa
QBELMIRatings(Aa3)
Below Baa3 Aa Aa
FirstMac Mortgage Funding Trust Series 1E-2007 Class A1 Notes (Aaa)
Aaa
QBELMIRatings(Aa3)
Aa1
Aa2
Aa3
A1
A2
A3 Aa
Baa1 Aa Aa
Baa2 Aa Aa
Baa3 Aa Aa Aa
Below Baa3 Aa Aa Aa

FirstMac Mortgage Funding Trust Series 1E-2007 Class A2 Notes (Aaa)
Aaa
Aa1
Aa2
Aa3
A1
A2
A3 Aa
Baa1 Aa Aa
Baa2 Aa Aa
Baa3 Aa Aa Aa
QBELMIRatings(Aa3)
Below Baa3 Aa Aa Aa
Interstar Millennium Series 2004-1E Trust Class AB (Aa1)
Aaa
Aa1
Aa2
Aa3 Aa
A1 Aa
A2 Aa Aa
A3 Aa Aa
Baa1 Aa Aa Aa
Baa2 Aa Aa Aa
Baa3 Aa Aa A
QBELMIRatings(Aa3)
Below Baa3 Aa Aa Aa A
Interstar Millennium Series 2004-2G Trust Class AB (Aa1)
Aaa
Aa1
Aa2
Aa3
A1
A2
A3
Baa1 Aa
Baa2 Aa
Baa3 Aa Aa
QBELMIRatings(Aa3)
Below Baa3 Aa Aa

Aaa
Aa1
Aa2
Aa3
A1 Aa
A2 Aa
A3 Aa Aa
Baa1 Aa Aa
Baa2 Aa Aa Aa
Baa3 Aa Aa Aa
QBELMIRatings(Aa3)
Below Baa3 Aa Aa A
Aaa
Aa1
Aa2
Aa3
A1 Aa
A2 Aa
A3 Aa
Baa1 Aa Aa
Baa2 Aa Aa
Baa3 Aa Aa Aa
QBELMIRatings(Aa3)
Below Baa3 Aa Aa Aa
Interstar Millennium Series 2005-2L Trust Class AB (Aa1)
Aaa
Aa1
Aa2
Aa3
A1
A2
A3
Baa1
Baa2
Baa3
QBELMIRatings(Aa3)
Below Baa3 Aa

Aaa
Aa1
Aa2
Aa3
A1
A2
A3 Aa
Baa1 Aa
Baa2 Aa
Baa3 Aa Aa
QBELMIRatings(Aa3)
Below Baa3 Aa Aa
Aaa
Aa1
Aa2
Aa3
A1
A2
A3
Baa1 Aa
Baa2 Aa
Baa3 Aa Aa
QBELMIRatings(Aa3)
Below Baa3 Aa Aa
Interstar Millennium Series 2006-3L Trust Class A1 (Aaa)
Aaa
Aa1
Aa2
Aa3
A1
A2
A3
Baa1
Baa2 Aa
Baa3 Aa
QBELMIRatings(Aa3)
Below Baa3 Aa Aa

Interstar Millennium Series 2006-3L Trust Class A2 (Aaa)
Aaa
Aa1
Aa2
Aa3
A1
A2
A3
Baa1
Baa2 Aa
Baa3 Aa
QBELMIRatings(Aa3)
Below Baa3 Aa Aa
Interstar Millennium Series 2006-3L Trust Class AB (Aa1)
Aaa
Aa1
Aa2 Aa
Aa3 Aa
A1 Aa Aa
A2 Aa Aa Aa
A3 Aa Aa Aa
Baa1 Aa Aa Aa A
Baa2 Aa Aa Aa A
Baa3 Aa Aa Aa A A
QBELMIRatings(Aa3)
Below Baa3 Aa Aa Aa Aa A A
Interstar Millennium Series 2006-4H Class A1 (Aaa)
Aaa
Aa1
Aa2
Aa3
A1
A2
A3
Baa1 Aa
Baa2 Aa Aa
Baa3 Aa Aa Aa
QBELMIRatings(Aa3)
Below Baa3 Aa Aa Aa Aa

Interstar Millennium Series 2006-4H Class A2 (Aaa)
Aaa
Aa1
Aa2
Aa3
A1
A2
A3
Baa1 Aa
Baa2 Aa Aa
Baa3 Aa Aa Aa
QBELMIRatings(Aa3)
Interstar Millennium Series 2006-4H Class AB (Aa1)
Aaa
Aa1
Aa2
Aa3 Aa
A1 Aa Aa
A2 Aa Aa Aa
A3 Aa Aa Aa Aa
Baa1 Aa Aa Aa Aa A
Baa3 Aa Aa Aa Aa A A A
QBELMIRatings(Aa3)
Below Baa3 Aa Aa Aa Aa A A A A
Lion Series 2007-1 Trust Class A (Aaa)
Aaa
Aa1
Aa2
Aa3
A1
A2
A3 Aa Aa Aa Aa Aa Aa Aa Aa Aa Aa Aa
Baa3 A A A A A A A A A A A
QBELMIRatings(Aa3)
Below Baa3 A A A A A A A A A A A

Medallion Trust Series 2007-1G Class A-1 (Aaa)
Aaa Aa Aa Aa
Aa1 Aa Aa Aa
Aa2 Aa Aa Aa
Aa3 Aa Aa Aa
A1 Aa Aa Aa
A2 Aa Aa Aa
A3 Aa Aa Aa
Baa1 Aa Aa Aa
Baa2 Aa Aa Aa
Baa3 Aa Aa Aa
QBELMIRatings(Aa3)
Below Baa3 Aa Aa Aa
Aaa Aa Aa Aa
Aa1 Aa Aa Aa
Aa2 Aa Aa Aa
Aa3 Aa Aa Aa
A1 Aa Aa Aa
A2 Aa Aa Aa
A3 Aa Aa Aa
Baa1 Aa Aa Aa
Baa2 Aa Aa Aa
Baa3 Aa Aa Aa
QBELMIRatings(Aa3)
Below Baa3 Aa Aa Aa
Aaa Aa Aa Aa
Aa1 Aa Aa Aa
Aa2 Aa Aa Aa
Aa3 Aa Aa Aa
A1 Aa Aa Aa
A2 Aa Aa Aa
A3 Aa Aa Aa
Baa1 Aa Aa Aa
Baa2 Aa Aa Aa
Baa3 Aa Aa Aa
QBELMIRatings(Aa3)
Below Baa3 Aa Aa Aa

Aaa Aa Aa Aa
Aa1 Aa Aa Aa
Aa2 Aa Aa Aa
Aa3 Aa Aa Aa
A1 Aa Aa Aa
A2 Aa Aa Aa
A3 Aa Aa Aa
Baa1 Aa Aa Aa
Baa2 Aa Aa Aa
Baa3 Aa Aa Aa
QBELMIRatings(Aa3)
Below Baa3 Aa Aa Aa
National RMBS Trust 2006-1 Class A (Aaa)
Aaa
Aa1
Aa2
Aa3
A1
A2
A3
Baa1 Aa Aa Aa Aa
QBELMIRatings(Aa3)
Below Baa3 Aa Aa Aa Aa Aa Aa Aa Aa Aa Aa A
Progress 2005-1 Trust Class A (Aaa)
Aaa
Aa1
Aa2
Aa3
A1
A2
A3
Baa1
Baa2
Baa3 Aa
QBELMIRatings(Aa3)
Below Baa3 Aa Aa Aa

Progress 2007-1G Trust Class 1A (Aaa)
Aaa
Aa1
Aa2
Aa3 Aa
A1 Aa
A2 Aa Aa
A3 Aa Aa
Baa1 Aa Aa Aa
Baa2 Aa Aa Aa
Baa3 Aa Aa Aa Aa
QBELMIRatings(Aa3)
Progress 2007-1G Trust Class 2A (Aaa)
Aaa
Aa1
Aa2
Aa3 Aa
A1 Aa
A2 Aa Aa
A3 Aa Aa
Baa1 Aa Aa Aa
Baa2 Aa Aa Aa
Baa3 Aa Aa Aa Aa
QBELMIRatings(Aa3)
PUMA Global Trust No.5 Class A-1 (Aaa)
Aaa
Aa1
Aa2 Aa
Aa3 Aa
A1 Aa Aa
A2 Aa Aa Aa
A3 Aa Aa Aa Aa
Baa1 Aa Aa Aa Aa
Baa2 Aa Aa Aa Aa Aa
Baa3 Aa Aa Aa Aa Aa A
QBELMIRatings(Aa3)
Below Baa3 Aa Aa Aa Aa Aa Aa A

Aaa
Aa1
Aa2 Aa
Aa3 Aa
A1 Aa Aa
A2 Aa Aa Aa
A3 Aa Aa Aa Aa
Baa1 Aa Aa Aa Aa
Baa2 Aa Aa Aa Aa Aa
QBELMIRatings(Aa3)
Aaa
Aa1
Aa2 Aa
Aa3 Aa
A1 Aa Aa
A2 Aa Aa Aa
A3 Aa Aa Aa Aa
Baa1 Aa Aa Aa Aa
Baa2 Aa Aa Aa Aa Aa
QBELMIRatings(Aa3)
Puma Masterfund P-12 Series A Class A (Aaa)
Aaa Aa
Aa1 Aa
Aa2 Aa Aa
Aa3 Aa Aa Aa
A1 Aa Aa Aa
A2 Aa Aa Aa Aa
A3 Aa Aa Aa Aa Aa
Baa1 Aa Aa Aa Aa Aa Aa
Baa3 Aa Aa Aa Aa Aa A A
QBELMIRatings(Aa3)
Below Baa3 Aa Aa Aa Aa Aa A A A

PUMA Masterfund P-12 Series B Class A (Aaa)
Aaa
Aa1 Aa
Aa2 Aa
Aa3 Aa Aa
A1 Aa Aa Aa
A2 Aa Aa Aa Aa
A3 Aa Aa Aa Aa
Baa1 Aa Aa Aa Aa Aa
Baa3 Aa Aa Aa Aa Aa Aa A
QBELMIRatings(Aa3)
Below Baa3 Aa Aa Aa Aa Aa A A
PUMA Masterfund P-13 Series A Class A (Aaa)
Aaa
Aa1
Aa2
Aa3 Aa
A1 Aa
A2 Aa Aa
A3 Aa Aa
Baa1 Aa Aa Aa
Baa2 Aa Aa Aa Aa
Baa3 Aa Aa Aa Aa
QBELMIRatings(Aa3)
Below Baa3 Aa Aa Aa Aa Aa
PUMA Masterfund S-4 Class A (Aaa)
Aaa Aa
Aa1 Aa Aa
Aa2 Aa Aa
Aa3 Aa Aa
A1 Aa Aa Aa
A2 Aa Aa Aa
A3 Aa Aa Aa
Baa1 Aa Aa Aa Aa
Baa2 Aa Aa Aa Aa
Baa3 Aa Aa Aa Aa
QBELMIRatings(Aa3)
Below Baa3 Aa Aa Aa Aa A

RAMS MORTGAGE SECURITIES TRUST in respect of Series 2006-1 Class A (Aaa)
Aaa
Aa1
Aa2
Aa3
A1
A2
A3
Baa1
Baa2
Baa3
QBELMIRatings(Aa3)
Below Baa3 Aa Aa Aa
RAMS MORTGAGE SECURITIES TRUST in respect of Series 2006-1 Class AB (Aa1)
Aaa
Aa1
Aa2
Aa3
A1
A2
A3
Baa1
Baa2 Aa Aa Aa
Baa3 Aa Aa Aa Aa Aa
QBELMIRatings(Aa3)
Below Baa3 Aa Aa Aa Aa Aa Aa Aa A
RAMS Mortgage Securities Trust Series 2007-3 Class AB (Aa1)
Aaa
Aa1
Aa2
Aa3
A1
A2
A3
Baa1
Baa2
Baa3
QBELMIRatings(Aa3)
Below Baa3 Aa Aa

RAMS Mortgage Securities Trust Series UniCredit (1) Class A (Aaa)
Aaa Aa Aa
Aa1 Aa Aa Aa
Aa2 Aa Aa Aa
Aa3 Aa Aa Aa Aa
A1 Aa Aa Aa Aa Aa
A2 Aa Aa Aa Aa Aa
A3 Aa Aa Aa Aa Aa Aa
Baa1 Aa Aa Aa Aa Aa Aa A
QBELMIRatings(Aa3)
Below Baa3 Aa Aa Aa Aa Aa Aa A A A
Resimac Premier Euro 2006-1E Trust Class 1A (Aaa)
Aaa
Aa1
Aa2
Aa3
A1
A2 Aa
A3 Aa
Baa1 Aa
Baa2 Aa
Baa3 Aa Aa
QBELMIRatings(Aa3)
Below Baa3 Aa Aa
Resimac Premier Euro 2006-1E Trust Class 2A (Aaa)
Aaa
Aa1
Aa2
Aa3
A1
A2 Aa
A3 Aa
Baa1 Aa
Baa2 Aa
Baa3 Aa Aa
QBELMIRatings(Aa3)
Below Baa3 Aa Aa

RESIMAC Triomphe Trust Warehouse Series No.1 Class AB (Aa1)
Aaa Aa Aa A A A Baa
Aa1 Aa Aa A A A Baa
Aa2 Aa Aa A A A Baa
Aa3 Aa Aa A A A Baa
A1 Aa Aa A A A Baa
A2 Aa Aa A A A Baa
A3 Aa Aa A A A Baa
Baa1 Aa Aa A A A Baa
QBELMIRatings(Aa3)
Below Baa3 Aa Aa A A A Baa
Securitised Australian Mortgage Trust 2006-1 Class A (Aaa)
Aaa Aa Aa
QBELMIRatings(Aa3)
Aa1 Aa Aa
Aa2 Aa Aa
Aa3 Aa Aa
A1 Aa Aa
A2 Aa Aa
A3 Aa Aa
Baa1 Aa Aa
Baa2 Aa Aa
Baa3 Aa Aa
Below Baa3 Aa Aa
Series 2004-2(W) Torrens Trust Class A-2 (Aaa)
Aaa Aa Aa Aa
Aa1 Aa Aa Aa
Aa2 Aa Aa Aa
Aa3 Aa Aa Aa
A1 Aa Aa Aa
A2 Aa Aa Aa
A3 Aa Aa Aa
Baa1 Aa Aa Aa
Baa2 Aa Aa Aa
Baa3 Aa Aa Aa
QBELMIRatings(Aa3)
Below Baa3 Aa Aa Aa

TORRENS Series 2008-2(W) Trust Class AB (Aa1)
Aaa
Aa1
Aa2 Aa
Aa3 Aa Aa
A1 Aa Aa Aa
A2 Aa Aa Aa Aa
A3 Aa Aa Aa Aa A
Baa2 Aa Aa Aa Aa Aa A A A
Baa3 Aa Aa Aa Aa Aa A A A A
QBELMIRatings(Aa3)
Below Baa3 Aa Aa Aa Aa Aa A A A A A A
Series 2007-1E SWAN Trust Class A1 (Aaa)
Aaa
Aa1
Aa2
Aa3
A1
A2
A3
QBELMIRatings(Aa3)
Aaa
Aa1
Aa2
Aa3
A1
A2
A3
QBELMIRatings(Aa3)

Aaa
Aa1
Aa2
Aa3
A1
A2
A3
QBELMIRatings(Aa3)
Aaa
Aa1
Aa2
Aa3
A1
A2
A3
QBELMIRatings(Aa3)
Series 2009-1 REDS Trust Class A1 (Aaa)
Aaa Aa Aa Aa
Aa1 Aa Aa Aa
Aa2 Aa Aa Aa
Aa3 Aa Aa Aa
A1 Aa Aa Aa
A2 Aa Aa Aa
A3 Aa Aa Aa
Baa1 Aa Aa Aa
Baa2 Aa Aa Aa
Baa3 Aa Aa Aa
QBELMIRatings(Aa3)
Below Baa3 Aa Aa Aa

Series 2009-1 REDS Trust Class A-S (Aaa)
Aaa Aa Aa Aa
Aa1 Aa Aa Aa
Aa2 Aa Aa Aa
Aa3 Aa Aa Aa
A1 Aa Aa Aa
A2 Aa Aa Aa
A3 Aa Aa Aa
Baa1 Aa Aa Aa
Baa2 Aa Aa Aa
Baa3 Aa Aa Aa
QBELMIRatings(Aa3)
Below Baa3 Aa Aa Aa
Series 2007-1E REDS Trust Class A-1 (Aaa)
Aaa Aa
Aa1 Aa
Aa2 Aa
Aa3 Aa
A1 Aa
A2 Aa
A3 Aa
Baa1 Aa
Baa2 Aa Aa
Baa3 Aa Aa
QBELMIRatings(Aa3)
Below Baa3 Aa Aa
Series 2007-1E REDS Trust Class A-2 (Aaa)
Aaa Aa
Aa1 Aa
Aa2 Aa
Aa3 Aa
A1 Aa
A2 Aa
A3 Aa
Baa1 Aa
Baa2 Aa Aa
Baa3 Aa Aa
QBELMIRatings(Aa3)
Below Baa3 Aa Aa

SMHL Global Fund 2007-1 Class A1 (Aaa)
Aaa Aa Aa
Aa1 Aa Aa
Aa2 Aa Aa
Aa3 Aa Aa
A1 Aa Aa
A2 Aa Aa
A3 Aa Aa
Baa1 Aa Aa
Baa2 Aa Aa
Baa3 Aa Aa
QBELMIRatings(Aa3)
Below Baa3 Aa Aa
Aaa Aa Aa
Aa1 Aa Aa
Aa2 Aa Aa
Aa3 Aa Aa
A1 Aa Aa
A2 Aa Aa
A3 Aa Aa
Baa1 Aa Aa
Baa2 Aa Aa
Baa3 Aa Aa
QBELMIRatings(Aa3)
Below Baa3 Aa Aa
Aaa Aa Aa
Aa1 Aa Aa
Aa2 Aa Aa
Aa3 Aa Aa
A1 Aa Aa
A2 Aa Aa
A3 Aa Aa
Baa1 Aa Aa
Baa2 Aa Aa
Baa3 Aa Aa
QBELMIRatings(Aa3)
Below Baa3 Aa Aa

SMHL Private Placement Trust 2008-2 Class A (Aaa)
Aaa Aa Aa Aa A A A
Aa1 Aa Aa Aa A A A
Aa2 Aa Aa Aa A A A
Aa3 Aa Aa Aa A A A
A1 Aa Aa Aa A A A
A2 Aa Aa Aa A A A
A3 Aa Aa Aa A A A
Baa1 Aa Aa Aa A A A
Baa2 Aa Aa Aa A A A
Baa3 Aa Aa Aa A A A
QBELMIRatings(Aa3)
Superannuation Members' Home Loans (SMHL) Warehousing Trust 2004-1 Class A (Aaa)
Aaa Aa Aa Aa A A A
Aa1 Aa Aa Aa A A A
Aa2 Aa Aa Aa A A A
Aa3 Aa Aa Aa A A A
A1 Aa Aa Aa A A A
A2 Aa Aa Aa A A A
A3 Aa Aa Aa A A A
Baa1 Aa Aa Aa A A A
Baa2 Aa Aa Aa A A A
Baa3 Aa Aa Aa A A A
QBELMIRatings(Aa3)

APPENDIX 3 – NOTES INDEPENDENT OF GENWORTH AND QBE LMI
Below listed in alphabetical order are the notes who’s current rating is independent of the credit benefit Moody’s places on the
mortgage lenders insurance provided by Genworth and QBE LMI.
Apollo Series 2003-1E Trust Class A
Apollo Series 2004-1E Trust Class 1A
Apollo Series 2004-2 Trust Class A
Apollo Series 2005-2 Trust Class A
Australian Residential Mortgage Securities (ARMS) II Euro Fund VI Class A
Australian Residential Mortgage Securities (ARMS) II Fund XV Class A Bonds
Australian Residential Mortgage Securities (ARMS) II Global Fund 3 Class A-1(a)
Australian Residential Mortgage Securities (ARMS) II Global Fund 3 Class A-1(b)
Australian Residential Mortgage Securities (ARMS) II Low Doc Fund I Class A-2
Challenger Millennium Series 2008-1 Trust Class A
Crusade Euro Trust No. 1E of 2004 Class A1
Crusade Euro Trust No. 1E of 2004 Class B
Crusade Euro Trust No. 1E of 2007 Class A-1
Crusade Euro Trust No. 1E of 2007 Class A-2
Crusade Euro Trust No. 1E of 2007 Class B
Crusade Global Trust No. 1 of 2007 Class A-1
Crusade Global Trust No.1 of 2003 Class A
Crusade Global Trust No.1 of 2004 Class A-1
Crusade Global Trust No.2 of 2003 Class A
Crusade Trust No.1A of 2002 Class A2
Crusade Trust No.1A of 2002 Class B

Crusade Trust No.1A of 2005 Class A
FirstMac Bond Series 1-2005 Trust Class A1-1 Notes
FirstMac Bond Series 1-2005 Trust Class A1-2 Notes
FirstMac Bond Series 1E-2006 Trust Class A Notes
FirstMac Bond Series 2-2005 Trust Class A1 Notes
FirstMac Bond Series 2-2005 Trust Class AB Notes
FirstMac Bond Series 3-2005 Trust Class A Notes
FirstMac Bond Series 3-2005 Trust Class AB Notes
FirstMac Mortgage Funding Trust Series 1-2007 Class A Notes
HBS Trust 2003-1E Class A
HBS Trust 2004-1 Class A
HBS Trust 2005-1E Class A
HBS Trust 2006-1 Class A
Illawarra Series 2003-1 Trust Class A-2
Interstar Millennium Series 2002-1G Trust Class A2
Interstar Millennium Series 2004-1E Trust Class A2
Interstar Millennium Series 2004-2G Trust Class A
Interstar Millennium Series 2005-1G Trust Class A
Interstar Millennium Series 2005-2L Trust Class A-1
Interstar Millennium Series 2005-2L Trust Class A-2
Interstar Millennium Series 2005-3E Trust Class A-1
Interstar Millennium Series 2005-3E Trust Class A-2
Kingfisher Trust 2004-1G Class A
Maxis Loans Securitisation Fund 2004-1 Class A1
Maxis Loans Securitisation Fund 2004-1 Class A2
Maxis Loans Securitisation Fund 2005-1 Class A
Medallion Trust Series 2003-1G Class A
Medallion Trust Series 2004-1G Class A-1
Medallion Trust Series 2005-2G Class A
National RMBS Trust 2004-1 Class A1
Progress 2003 E-1 Trust Class 1A

Progress 2004-2 Trust Class A
Progress 2009-1 Trust Class A-1
Progress 2009-1 Trust Class A-2
Puma Global Trust No.3 Class A Notes
Puma Global Trust No.4 Class A Notes
Puma Global Trust S-1 Class A Notes
Puma Masterfund H-1 Class A
Puma Masterfund P-10 Class A Notes
PUMA Masterfund P-10 Series B Class A Notes
PUMA Masterfund P-10 Series C Class A Notes
PUMA Masterfund P-11 Series A Class A
Puma Masterfund P-11 Series B Class A
Puma Masterfund P-8 Class A-2 Notes
PUMA Masterfund P-8 Series B Class A-2 Notes
Puma Masterfund P-9 Class A-2
PUMA Masterfund S-2 Series A Class A Notes
Puma Masterfund S-3 Class A
PUMA Masterfund S-5 Class A
RAMS Mortgage Corporation Ltd Series 1 Cl. A
RAMS Mortgage Corporation Ltd Series 11 Series 11 - Class A3
RAMS Mortgage Securities Trust in respect of Series 2007-1HE Class A
RAMS Mortgage Securities Trust in respect of Series 2007-1HE Class AB
RAMS Mortgage Securities Trust in respect of the Series 2007-2H Class A
RAMS Mortgage Securities Trust in respect of the Series 2007-2H Class AB
RAMS Mortgage Securities Trust Series 2007-3 Class A
RBS Trust 2004-1 Class A
RBS Trust 2004-1 Super Senior Notes
Resimac Premier Euro 2004-2E Trust Class 1A1
Resimac Premier Euro 2004-2E Trust Class 1A2
Resimac Premier Euro 2004-2E Trust Class 2A
RESIMAC Premier Euro 2005-1E Trust Class 1A
RESIMAC Premier Euro 2005-1E Trust Class 2A
RESIMAC Triomphe Trust Warehouse Series No.1 Class A
RMS Trust 2002-1 Class A3
RMS Trust 2003-1E Class 1A
RMS Trust 2003-1E Class 2A
RMS Trust 2004-1E Class A1
RMS Trust 2004-1E Class A2
Securitised Australian Mortgage Trust 2003-1 Class A
Series 2004-1 Torrens Trust Class A-1
Series 2005-1 Reds Trust Class A-1

Series 2005-1G WST Trust Class A-1
Series 2005-2(S) TORRENS Trust Class A
Series 2006-1E REDS Trust Class A-1
Series 2006-1E REDS Trust Class A-2
Series 2006-1E SWAN Trust Class A1
Series 2007-1G WST Trust Class A-2a
Series 2007-1G WST Trust Class A-2b
Series 2007-1G WST Trust Class A-2c
Series 2007-2 REDS Trust Class A
SMHL Global Fund No. 4 Class A
SMHL Global Fund No. 7 Class A1
SMHL Private Placement Trust 2008-1 Class A1
SMHL Private Placement Trust 2008-1 Class A2
SMHL Securitisation Fund 2006-1 Class A
Superannuation Members' Home Loans (SMHL) Securitisation Fund 2003-1 Class A-2
Superannuation Members' Home Loans (SMHL) Securitisation Fund 2003-2 Class A3
Superannuation Members' Home Loans (SMHL) Securitisation Fund 2005-1 Class A
Superannuation Members' Home Loans (SMHL) Securitisation Fund 2005-2 Class A
TORRENS Series 2005-3(E) Trust Class A-1
TORRENS Series 2008-2(W) Trust Class A
TORRENS Series 2009-1 Trust Class A1
TORRENS Series 2009-1 Trust Class A2
Unity Series 2003-1 Trust Class AB
WB Trust 2003-1 Class A
WB Trust 2003-1 Class B
WB Trust 2003-1 Super Senior
WB Trust 2004-1 Class B
WB Trust 2004-1 Class C

SF179345isf
CREDIT RATINGS ARE MIS’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES.
MIS DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUAL, FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED
FINANCIAL LOSS IN THE EVENT OF DEFAULT. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET
VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. CREDIT RATINGS DO NOT CONSTITUTE INVESTMENT
OR FINANCIAL ADVICE, AND CREDIT RATINGS ARE NOT RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. CREDIT RATINGS DO NOT
COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MIS ISSUES ITS CREDIT RATINGS WITH THE EXPECTATION AND
UNDERSTANDING THAT EACH INVESTOR WILL MAKE ITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FOR PURCHASE,
HOLDING, OR SALE.
© Copyright 2009, Moody’s Investors Service, Inc. and/or its licensors and affiliates (together, “MOODY’S”). All rights reserved. ALL INFORMATION CONTAINED
HEREIN IS PROTECTED BY COPYRIGHT LAW AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER
TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN
PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY’S PRIOR WRITTEN CONSENT. All information contained
herein is obtained by MOODY’S from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as well as other
factors, however, such information is provided “as is” without warranty of any kind and MOODY’S, in particular, makes no representation or warranty, express or
implied, as to the accuracy, timeliness, completeness, merchantability or fitness for any particular purpose of any such information. Under no circumstances shall
MOODY’S have any liability to any person or entity for (a) any loss or damage in whole or in part caused by, resulting from, or relating to, any error (negligent or
otherwise) or other circumstance or contingency within or outside the control of MOODY’S or any of its directors, officers, employees or agents in connection with the
procurement, collection, compilation, analysis, interpretation, communication, publication or delivery of any such information, or (b) any direct, indirect, special,
consequential, compensatory or incidental damages whatsoever (including without limitation, lost profits), even if MOODY’S is advised in advance of the possibility of
such damages, resulting from the use of or inability to use, any such information. The credit ratings and financial reporting analysis observations, if any, constituting
part of the information contained herein are, and must be construed solely as, statements of opinion and not statements of fact or recommendations to purchase,
sell or hold any securities. NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR
ANY PARTICULAR PURPOSE OF ANY SUCH RATING OR OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY’S IN ANY FORM OR MANNER
WHATSOEVER. Each rating or other opinion must be weighed solely as one factor in any investment decision made by or on behalf of any user of the information
contained herein, and each such user must accordingly make its own study and evaluation of each security and of each issuer and guarantor of, and each provider of
credit support for, each security that it may consider purchasing, holding or selling.
MOODY’S hereby discloses that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and
preferred stock rated by MOODY’S have, prior to assignment of any rating, agreed to pay to MOODY’S for appraisal and rating services rendered by it fees ranging
from $1,500 to approximately $2,400,000. Moody’s Corporation (MCO) and its wholly-owned credit rating agency subsidiary, Moody’s Investors Service (MIS), also
maintain policies and procedures to address the independence of MIS’s ratings and rating processes. Information regarding certain affiliations that may exist between
directors of MCO and rated entities, and between entities who hold ratings from MIS and have also publicly reported to the SEC an ownership interest in MCO of more
than 5%, is posted annually on Moody’s website at www.moodys.com under the heading “Shareholder Relations – Corporate Governance – Director and Shareholder
Affiliation Policy.”
30 • Moody’s Investors Service Potential Rating Migrations on Individual Senior and

Potential Rating Migrations of Individual Senior and Mezzanine Notes in Australian Prime RMBS

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