Fitch Assigns Expected Ratings to Illawarra Series 2013-1 RMBS Trust

Sun Apr 28, 2013 10:10pm EDT

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(The following statement was released by the rating agency) Link to Fitch Ratings' Report: Illawarra Series 2013-1 RMBS Trust here SYDNEY, April 28 (Fitch) Fitch Ratings has assigned an expected rating to Illawarra Series 2013-1 RMBS Trust's mortgage-backed floating-rate notes as follows: AUD279.0m Class A notes: 'AAA(EXP)sf'; Outlook Stable AUD15m Class AB notes: Not Rated AUD6 m Class B notes: Not Rated The notes will be issued by BNY Trust Company of Australia Limited in its capacity as trustee for Illawarra Series 2013-1 RMBS Trust. Key Rating Drivers The 'AAA(EXP)sf' Long-Term Rating assigned to the class A notes is based on: the quality of the collateral; the 7.0% credit enhancement (CE) provided to the class A notes by the subordinate AB, and B notes and the liquidity facility of 1.5%. The rating also reflects IMB Limited's underwriting standards and servicing capabilities. At the cut-off date, the collateral pool consisted of 1,867 loans totaling approximately AUD309m. Loans included in the pool have been originated by IMB Limited. The weighted average current loan-to-value ratio was 60%, and the weighted average seasoning was 51 months. The pool is composed of 100% fully verified documentation loans, while investment loans account for 27.7% and first-time borrowers represent 11.3% of the pool. Rating Sensitivities Fitch's stress and rating sensitivity analysis is discussed in the presale report titled "Illawarra Series 2013-1 RMBS Trust", available at www.fitchratings.com or by clicking on the above link. Included as an appendix to the report are a description of the representations, warranties, and enforcement mechanisms. Contacts: Primary Analyst Courtney Miller Analyst +612 8256 0347 Fitch Australia Pty Ltd. Level 15, 77 King St, Sydney, NSW 2000 Secondary Analyst Spencer Wilson Associate Director +612 8256 0320 Committee Chairperson Natasha Vojvodic Senior Director +61 2 8256 0350 Media Relations: Iselle Gonzalez, Sydney, Tel: +61 2 8256 0326, Email: iselle.gonzalez@fitchratings.com. The source of information identified for this rating action was informed by information from IMB Limited, Macquarie Bank Limited, as arranger and their counsel Allen & Overy. The issuer has informed Fitch that not all relevant underlying information used in the analysis of the rated notes is public. Additional information is available at www.fitchratings.com. Applicable criteria, "Global Structured Finance Rating Criteria" dated 6 June 2012, "Global Criteria for Lenders' Mortgage Insurance in RMBS" dated 7 September 2012, "APAC Residential Mortgage Criteria" dated 3 August 2012, "APAC Residential Mortgage Criteria Addendum - Australia" dated 3 August 2012, "Counterparty Criteria for Structured Finance Transactions" dated 30 May 2012, and "Counterparty Criteria for Structured Finance Transactions: Derivative Addendum" dated 30 May 2012, are available at www.fitchratings.com. Applicable Criteria and Related Research Global Structured Finance Rating Criteria here APAC Residential Mortgage Criteria here APAC Residential Mortgage Criteria Addendum — Australia here Counterparty Criteria for Structured Finance Transactions here Counterparty Criteria for Structured Finance Transactions: Derivative Addendum here Global Criteria for Lenders’ Mortgage Insurance in RMBS here Additional Disclosure Solicitation Status here ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: here. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S FREE WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. Fitch Australia Pty Ltd holds an Australian financial services licence (AFS licence no. 337123) which authorises it to provide credit ratings to wholesale clients only. Credit ratings information published by Fitch is not intended to be used by persons who are retail clients within the meaning of the Corporations Act 2001.

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