Pepper Homeloans has launched its second non-conforming RMBS transaction for 2016, with preliminary ratings assigned by both Standard & Poor's and Moody's Investor Service. This securitisation features five classes of A Notes (Class A1-ua, Class A1-ub, Class A1-af, Class A1-a, and Class A2); along with Class B Notes, Class C Notes, Class D Notes, Class E Notes, Class F Notes and Class G Notes (split into Class G1 and Class G2). Moody's has rated all but the last two classes of notes, while S&P has rated the top five only.A notable aspect of this transaction is that the top two tranches, the Class A1-ua and Class A1-ub notes, are denominated in US dollars (US$125 million and US$30.5 million, respectively) with an applicable exchange rate of US$0.75 per AUD, according to a pre-sale release from S&P."The transaction is an Australian non-conforming and near prime RMBS secured by a portfolio of residential mortgage loans. A substantial portion of the portfolio consists of loans extended to borrowers with impaired credit histories (42.3 per cent) or made on an alternative documentation basis (37.7 per cent)," said Moody's in a pre-sale report.The deal will raise almost A$500 million for Pepper if all the classes of notes being marketed are sold.