(The following was released by the rating agency)
Link to Fitch Ratings' Report: National RMBS Trust 2012-2 here
SYDNEY, December 13 (Fitch) Fitch Ratings has assigned National RMBS Trust 2012-2 mortgage-backed floating-rate notes final ratings as follows:
AUD800m Class A1 notes: 'AAAsf'; Outlook Stable
GBP85m Class A2 notes: 'AAAsf'; Outlook Stable
AUD50m Class B notes: not rated
AUD20m Class C notes: not rated
The final ratings are contingent on the receipt of final documents conforming to information already received.
The notes are issued by Perpetual Trustees Victoria Limited in its capacity as trustee of National RMBS Trust 2012-2.
"The transaction includes a soft bullet note class A2 with a scheduled maturity date at three years after closing. The note will either be redeemed by issuance of pass-through Class A2-R notes or converted to pass-through Class A2 notes," said Anthea Clark, Associate Director in Fitch's Structured Finance team.
At the pool cut-off date, the total collateral pool consisted of 4,517 residential loans originated by National Australia Bank's Advantedge distribution channel. Fitch's calculated weighted average current loan-to-value ratio is 62.9% and the weighted average loan seasoning is 26.2 months. The pool comprises 100% full documentation loans. Investment loans make up 10.1 % of the pool and owner occupier loans account for the remainder. Of the pool, interest-only loans represent 29.4%. The agency has incorporated all the above-mentioned factors into its credit analysis of the transaction.
The ratings assigned to the class A1 and A2 notes are based on the quality of the collateral; the 7% credit enhancement provided by the subordinate class B and C notes; excess spread; and a liquidity reserve account sized at 1.9% of the aggregate amount of the notes at closing.
The ratings also reflect mortgage insurance policies provided by QBE Lenders' Mortgage Insurance Limited ('AA-'/Stable) and Genworth Financial Mortgage Insurance Pty Limited; the interest rate swap arrangements in place; and Advantedge Financial Services Pty Ltd's mortgage underwriting and servicing capabilities.
The new issue report is available on www.fitchratings.com or by clicking on the link above.
Included in a corresponding new issue appendix, entitled "National RMBS Trust 2012-2", is a description of the representations, warranties and enforcement mechanisms, published today, also available on www.fitchratings.com.