(The following statement was released by the rating agency)Link to Fitch Ratings' Report: Pepper Prime 2012-1 Trust
  http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=695490
 SYDNEY, October 09 (Fitch) Fitch Ratings has assigned expected ratings to Pepper Prime 2012-1 Trust's Class A-u2 mortgage-backed floating-rate notes. The ratings are as follows:USD125.0m Class A-u2 notes: 'F1+sf(EXP)'.The Class A-u2 notes are being issued to partially refinance the Class A-u1 notes on their maturity date of 18 October 2013. The remaining balance on the Class A-u1 notes will be repaid from monies held in a retention account which currently totals AUD59.5m, and that will be utilised, along with the proposed issuance of Class A-u2 notes, to repay the maturing Class A-u1 notes. The Class A-u1 notes were originally issued in November 2012 as part of an AUD500m RMBS issue by Pepper Australia Pty Limited. The refinance of the Class A-u1 notes was contemplated in the original issuance and is detailed in the Fitch new issue report dated 20 November 2012. In the event that the Class A-u2 notes cannot be issued, National Australia Bank Limited (NAB, AA-/Stable/F1+) as the redemption facility provider, will subscribe to Class AR-u notes and fund the Class A-u1 note redemption. The Class A-u2 notes will mature in October 2014 and will be repaid from the monies in the retention account and the issuance of Class AR-u notes either to the market or subscribed for by NAB.The transaction continues to perform in line with Fitch's expectations at origination. The transaction has paid down since issuance from AUD500m to approximately AUD370m, inclusive of monies held in the retention account. Ratings for the remaining notes are unchanged, and are as follows (balances as at 18 September 2013): AUD0.0 Class AR-u notes: 'AAAsf'; Outlook Stable;AUD187.8m Class A-a notes: 'AAAsf'; Outlook Stable;AUD30.0m Class AB notes: 'AAAsf'; Outlook Stable;AUD12.5m Class B notes: NR andAUD2.5m Class C notes: NR.The notes will be issued by Permanent Custodians Limited in its capacity as trustee of Pepper Prime 2012-1 Trust. The assignment of the final rating is contingent on the receipt of final documents conforming to information already received.KEY RATING DRIVERSThe expected rating of the proposed Class A-u2 notes is linked to NAB's Short-Term Issuer Default Rating (IDR) of 'F1+'.RATING SENSITIVITIESNegative rating actions may result from changes in the NAB's Short-Term IDR.Fitch's initial rating drivers and rating sensitivities analysis are discussed in the new issue report entitled "Pepper Prime 2012-1 Trust", available on 
  www.fitchratings.com.
  Included as an appendix to the report are a description of the representations, warranties, and enforcement mechanisms.Contacts: Primary AnalystDavid CarrollDirector+61 2 8256 0333Fitch Australia Pty Ltd., Level 15, 77 King Street, Sydney NSW 2000Secondary AnalystAnthea ClarkAssociate Director+61 2 8256 0379Committee ChairpersonNatasha VojvodicSenior Director, +61 2 8256 0350The source of information used to assess these ratings was National Australia Bank Limited and their legal counsel, King and Wood Mallesons. The issuer has informed Fitch that not all relevant information about the rated notes is public.Applicable criteria, "Global Structured Finance Rating Criteria", dated 24 May 2013; "APAC Residential Mortgage Criteria", dated 1 August 2013; "APAC Residential Mortgage Criteria Addendum - Australia", dated 1 August 2013; "Counterparty Criteria for Structured Finance and Covered Bonds", dated 13 May 2013; "Counterparty Criteria for Structured Finance and Covered Bonds: Derivative Addendum", dated 13 May 2013; and "Global Criteria for Lender's Mortgage Insurance in RMBS", dated 1 August 2013 are available at 
  www.fitchratings.com.
 Media Relations: Iselle Gonzalez, Sydney, Tel: +61 2 8256 0326, Email: iselle.gonzalez@fitchratings.com.Additional information is available at 
  www.fitchratings.com.
 Applicable Criteria and Related Research: Global Structured Finance Rating Criteria
  http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=708661
 APAC Residential Mortgage Criteria
  http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=709855
 APAC Residential Mortgage Criteria Addendum ?? Australia
  http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=710259
 Counterparty Criteria for Structured Finance and Covered Bonds
  http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=707155
 Counterparty Criteria for Structured Finance and Covered Bonds: Derivative Addendum
  http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=707156
 Global Criteria for Lenders?? Mortgage Insurance in RMBS
  http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=709255
 Additional Disclosure Solicitation Status 
  http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=804583
 ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S FREE WEB SITE AT WWW.FITCHRATINGS.COM. PUBLISHED RATINGS, CRITERIA, AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE, AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE CODE OF CONDUCT SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.Fitch Australia Pty Ltd holds an Australian financial services licence (AFS licence no. 337123) which authorises it to provide credit ratings to wholesale clients only. Credit ratings information published by Fitch is not intended to be used by persons who are retail clients within the meaning of the Corporations Act 2001.