Moody's Investors Service and Standard & Poor's have assigned provisional ratings for up to A$297.0 million in notes, to be issued by Liberty Funding Pty Ltd. The notes are Liberty's first prime and non-conforming RMBS transaction for 2016, the Liberty Series 2016-1.In a pre-sale media release, S&P noted that the assessment of credit risk takes into account Liberty Financial's "underwriting standards, loan approval process, and servicing quality, along with the support provided by the LMI policies on 9.6 per cent of the loans in the portfolio. The LMI policies on the insured loans provide 100 per cent cover for the outstanding principal of each insured loan, accrued interest, and reasonable selling costs."Fitch rate all but one class of notes, while S&P only rated the top three (Fitch/S&P): A$40.0 million Class A1a Notes, (P)Aaa (sf)/ AAA (sf) $176.0 million Class A1b Notes, (P)Aaa (sf)/AAA (sf) $42.0 million Class A2 Notes, (P)Aaa (sf)/AAA (sf) $21.9 million Class B Notes, (P)Aa2 (sf) $4.8 million Class C Notes, (P)A2 (sf) $5.1 million Class D Notes, (P)Baa2 (sf) $3.9 million Class E Notes, (P)Ba2 (sf) $3.3 million Class F Notes, (P)B2 (sf)The $3.0 million Class G Notes are not rated by Moody's.Moody's added that the pool has only 10.51 months seasoning. As a result, the portfolio is carrying a large exposure to loans originated in 2014 and 2015 (14 per cent and 74 per cent, respectively), which was a historically low interest rate and increasing property value environment. These loans will be more exposed to interest rate rises and affordability issues than more seasoned pools.