Pepper's Servicer Rating Upgraded from ABOVE AVERAGE to STRONG by Standard & Poor's

Friday, 23 Dec 2011

Standard & Poor's Ratings Services today raised its overall ranking on Pepper Australia Pty Ltd. as a residential subprime loan servicer in Australia to STRONG from ABOVE AVERAGE. A subprime loan servicer ranking reflects the specialized skills required to service nonconforming and subprime loans. Pepper remains on Standard & Poor's global select servicer list.

The overall STRONG residential subprime loan servicer ranking on Pepper reflects:
• A clearly defined business strategy and robust business model;
• The company's well-established position as a primary servicer of subprime residential mortgage loans, with a high degree of industry knowledge and proficiency in the Australian servicing market;
• A strong, experienced senior management team that leads a well-qualified and skilled workforce;
• Its well-defined and structured corporate governance, risk management and compliance practices, underpinned by strong risk-management tools and senior management oversight; and
• Its solid proprietary loan processing and servicing infrastructure, which provides Pepper with an end-to-end integrated approach to loan origination, servicing, and management.

As part of the overall ranking increase, Standard & Poor's raised Pepper's subranking for management and organization as well as that for loan administration to STRONG from ABOVE AVERAGE. The outlook for the overall ranking is 'Stable'.

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