TEXT-Fitch afrms 5 Harvey RMBS tranches

(The following statement was released by the rating agency)

Feb 23 - Fitch Ratings has affirmed five classes of bonds issued from two Harvey RMBS transactions, as detailed below. Both transactions are backed by pools of Australian conforming residential full-documentation mortgages originated by Credit Union Australia Limited.

The rating actions are as listed below:

Series 2009-1 Harvey Trust (Harvey 2009-1):

AUD255.6m Class A-1 (ISIN AU3FN0007738) affirmed at 'AAAsf'; Outlook Stable

AUD13.5m Class A-2 (ISIN AU3FN0007746) affirmed at 'AAAsf'; Outlook Stable

AUD13.5m Class B (ISIN AU3FN0007753) affirmed at 'BBsf'; Outlook Stable

Series 2010-1 Harvey Trust (Harvey 2010-1):

AUD406.3m Class A-1 (ISIN AU3FN0010179) affirmed at 'AAAsf'; Outlook Stable

AUD26m Class A-2 (ISIN AU3FN0010187) affirmed at 'AAAsf'; Outlook Stable

The affirmations reflect Fitch's view that the available credit enhancement levels are able to support the notes' current ratings, and that the credit quality and performance of the loans in the respective collateral pools have remained in line with the agency's expectations.

"Both transactions have continued to benefit from an increase in credit enhancement due to seasoning and amortisation since issuance. The credit quality has remained in line with the respective initial portfolios and arrears levels are expected to remain low compared with Fitch's Conforming Dinkum Index," says Ben Newey, Director in Fitch's Structured Finance team.

As at the end of December 2011, 30+ days arrears were 0.49% and 0.44% for Harvey 2009-1 and Harvey 2010-1 respectively. Harvey 2009-1 has experienced one default to date resulting in a loss covered mainly by the LMI provider, and the remainder covered by excess spread. Harvey 2010-1 has not experienced any defaults to date. All loans in the underlying portfolios are covered by mortgage insurance, with policies provided by Genworth Financial Mortgage Insurance Pty Ltd and QBE Lenders Mortgage Insurance Pty Limited ('AA-'/Stable).