Announcement out S&P Downgraded MTN to BBB- reproduced...

Announcement out S&P Downgraded MTN to BBB- reproduced below

Melbourne, Oct. 3, 2008—Standard & Poor’s Ratings Services today announced that the ratings on the
A$535 million medium-term notes (MTNs) issued by Allco Max Securities and Mortgage Trust (Allco Max)
have been lowered to ‘BBB-’ from ‘A-’. The ratings remain on CreditWatch with negative implications,
where they were initially placed on March 25, 2008 (see list).
The most recent information made available by Allco Max has shown that the portfolio has experienced
material yield compression over a relatively short period of time. In Standard & Poor’s opinion, the yield
compression is likely to impact the transaction yield sufficiency test, leading to our view that three of the
critical portfolio tests, including the capital adequacy test, the MTN liquidity test, and senior expense income
ratio test, are now sensitive to a breach. Under the terms of the MTNs, Allco Max is required to actively
balance the portfolio to manage any actual or potential breaches; however, if current market conditions
continue, the options available to rebalance the portfolio are likely to diminish rapidly. Standard & Poor’s
will review any further information on the basis for, and longer term impact of, the portfolio yield
compression.
The remaining uncertainty on the pricing outcome of the warehouse notes has resulted in the MTNs
remaining on CreditWatch with negative implications.
Name Ratings To Ratings From
Allco Max Securities and Mortgage Trust
MTNs 2005-1T BBB-/Watch Neg A-/Watch Neg
Allco Max Securities and Mortgage Trust
MTNs 2006-1T BBB-/Watch Neg A-/Watch Neg