TEXT: Fitch Confirm CBA's Upsized Medallion Trust Series 2008-1R

(The following was released by the rating agency)

SYDNEY, February 08 (Fitch) Fitch Ratings has confirmed Commonwealth Bank Limited's upsized Medallion Trust Series 2008-1R ratings as stated below. The transaction is a securitisation backed by pools of Australian residential mortgages originated by Commonwealth Bank of Australia (CBA: 'AA'/Rating Watch Negative/'F1+') and Homepath Limited (wholly owned subsidiary of CBA).

AUD29,274.8m Class A (ISIN AU3FN0005617): 'AAAsf'; Outlook Stable

AUD915.6m Class B: 'AAsf'; Outlook Stable

Medallion Trust Series 2008-1R remains within its substitution period with no amortisation of the notes having occurred. The additional note issuance brings the total amount of Class A to AUD66,379m, Class B to AUD1,186m and the unrated Class C notes to AUD2,233m.

The ratings reflect Fitch's view that the credit enhancement provided by the additional notes issued by BNY Trust Company of Australia Limited in its capacity as trustee is able to support the notes' current ratings. The credit quality and performance of the loans in the collateral pool remains in line with the agency's expectations.

The collateral pool at the cut-off date has a weighted average loan-to-valuation ratio of 64.1%. Investment loans comprise 32.2% of the pool, non-discounted staff loans 1.9% and no reduced documentation loans are included. Current 30+ day arrears are below Fitch's Dinkum Index of 1.52% at 0.9%.

Of the pool 28.9% has Lenders Mortgage Insurance policies that are provided by QBE Lenders Mortgage Insurance Ltd (Insurer Financial Strength 'AA-'/Stable) and Genworth Financial Mortgage Insurance Pty Ltd.