HBS Trust No. 1 Nts Rtd AAA/AA- by S&P.

Business Editors

MELBOURNE, Australia--(BUSINESS WIRE)--Standard & Poor's

June 27, 2000--Standard & Poor's today assigned its triple-'A' rating to HBS Trust No. 1's A$24.4 million class A residential mortgage-backed notes and double-'A'-minus rating to the A$0.7 million class B notes, with the mortgages originated by Heritage Building Society Ltd.

The triple-'A' rating on the class A notes reflects:

-- The credit quality of the trust assets;

-- The interest rate swap provided by SG Australia Ltd. to cover interest
mismatches;

-- The obligation of the servicer to set interest rate on mortgage at a level
sufficient to enable trustee to meet its obligations as they fall due;

-- The 100% primary mortgage insurance policies from insurers with an insurer
financial strength rating of at least double-'A'-minus or from an unrated
insurer whose obligations are guaranteed by an insurer rated at least
double-'A'-minus;

-- The subordination of the class B notes equal to 2.8% of the aggregate value
of notes issued;

-- A liquidity facility of 2% of the aggregate value of notes issued;

-- The cash deposit of 2% of mortgage principal balance is available to cover
potential commingling risk, and a cash deposit of A$583,800 is available to
cover potential legal costs associated with perfecting legal title of the
mortgages loans;

-- A dynamically sized set-off reserve to cover any potential set-off risk; and


-- A guarantee of up to A$500,000 provided by HIH Casualty and General
Insurance Ltd. to cover any civil penalty expenses that may arise from breaches
of the Uniform Consumer Credit Code.

The subordinated class B notes benefit from these features with the exception of the subordination, Standard & Poor's said. --- CreditWire