RPT-Fitch affirms 2 Triton Trust No. 2 transactions
(Repeat for additional subscribers)
Sept 13 (Reuters) - (The following statement was released by the rating agency)
Fitch Ratings has affirmed three classes of Triton Trust No. 2 Colossus Series 2012-1 (Colossus 2012-1) and two classes of Triton Trust No.2 Bond Series 2013-1 (Triton 2013-1). Both transactions are securitisations of first-ranking Australian residential mortgage loans originated by Origin Finance.
KEY RATING DRIVERS
The affirmations reflect Fitch's view that the credit quality and performance of the loans in the collateral pool have remained within the agency's expectations and Fitch's expectation of Australia's stable economic conditions.
As at 31 July 2013, 30+ day arrears were at 2.75% and 1.02% for Colossus 2012-1 and Triton 2013-1, respectively. The pools had a weighted average indexed loan-to-value ratio of 51.0% and 50.2% for Colossus 2012-1 and Triton 2013-1, respectively and both portfolios contained 8% low documentation loans.
All loans in the underlying portfolios have lenders' mortgage insurance (LMI) provided by Genworth Financial Mortgage Insurance Pty Ltd and QBE Lenders' Mortgage Insurance Limited ('AA-'/Stable).
The servicer is in the process of being transitioned from Australia and New Zealand Banking Group (ANZ) to Columbus Capital Pty Limited, (Columbus). Columbus expects the full transfer to be completed before end-2013. Fitch does not view the possibility of payment interruption to be a major risk, given that Columbus has acquired the relevant payment account numbers to ensure there are no significant changes at the borrower level. ANZ will also be available to extend its sub-servicer role if required.
In March 2013, legal action was taken by Pioneer Mortgage Services, a mortgage manager against the originator, ANZ, which previously owned Origin Finance, and Columbus. The matter has since been resolved with no impact on the ratings assigned to both Triton Trust No. 2 transactions.
The ratings are as follows:
Triton Trust No.2 Colossus Series 2012-1
AUD191.1m Class A1 notes: 'AAAsf'; Outlook Stable
AUD217.7m Class A3 notes: 'AAAsf'; Outlook Stable
AUD2.0m Class AB notes: 'AAAsf'; Outlook Stable
AUD14.38m Class B notes: not rated
Triton Trust No.2 Bond Series 2013-1
AUD398.8m Class A notes: 'AAAsf'; Outlook Stable
AUD32m Class AB notes: 'AAAsf'; Outlook Stable
AUD13.25m Class B notes: not rated
AUD0.75m Class C notes: not rated
In Fitch's rating sensitivity analysis, the likelihood of a downgrade of the senior note classes is currently remote, based on the transaction's strong performance to date.
A comparison of the representations, warranties and enforcement mechanisms (RW&Es) to those of typical RW&Es for this asset class is available by accessing the report or links given under Related Research below.
Initial Key Rating Drivers and Rating Sensitivities are further described in the New Issue report dated 12 March 2013
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