Fitch Affirms Lion Series 2009-1 Trust at 'AAAsf'

Thu Jan 30, 2014 1:11am EST

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(The following statement was released by the rating agency) SYDNEY, January 30 (Fitch) Fitch Ratings has affirmed the rating of Lion Series 2009-1 Trust's Class A notes as shown below. The transaction is a securitisation of Australian conforming residential mortgages originated by HSBC Bank Australia Limited (HSBC). AUD1,458m Class A affirmed at 'AAAsf'; Outlook Stable. KEY RATING DRIVERS The affirmation reflects Fitch's view that the available credit enhancement and excess spread is able to support the current rating, the stable credit quality and performances of the pool, and Fitch's expectations of Australia's economic conditions. The transaction is currently paying down on a pro-rata basis with principal distributions being allocated to the Class A and Class B notes. As of 31 December 2013, the pool consisted of 6,663 loans totalling AUD1,695,312,347 with 30+ days arrears reported to be 0.50%, below Fitch's Dinkum Index of 1.19%. There is no lenders’ mortgage insurance, and there have been no losses to date. HSBC's product mix has not materially changed since closing and the portfolio is performing as expected. RATING SENSITIVITIES The prospect of a downgrade is considered remote given the level of subordination available to the Class A notes. A significant and unexpected increase in delinquencies, defaults and losses would be necessary before any negative rating action would be considered. Credit enhancement levels for the 'AAAsf' rated notes can support many multiples of arrears. Contacts: Lead Surveillance Analyst James Zanesi Director +61 2 8256 0306 Fitch Australia Pty Ltd, Level 15, 77 King Street, Sydney, NSW 2000 Committee Chairperson Natasha Vojvodic Senior Director +612 8256 0350 Media Relations: Iselle Gonzalez, Sydney, Tel: +61 2 8256 0326, Email: iselle.gonzalez@fitchratings.com. The source of information used to assess these ratings was the servicer, HSBC Bank Australia Limited. The issuer has informed Fitch that not all relevant underlying information used in the analysis of the rated notes is public. Applicable criteria, "Global Structured Finance Rating Criteria", dated 24 May 2013 "Global Criteria for Lenders' Mortgage Insurance in RMBS" dated 1 August 2013; "APAC Residential Mortgage Criteria" dated 1 August 2013, "APAC Residential Mortgage Criteria Addendum - Australia", dated 1 August 2013; "Counterparty Criteria for Structured Finance and Covered Bonds", dated 13 May 2013 and "Counterparty Criteria for Structured Finance and Covered Bonds: Derivative Addendum", dated 13 May 2013 are available at www.fitchratings.com. Additional information is available at www.fitchratings.com. Applicable Criteria and Related Research: Global Structured Finance Rating Criteria here Global Criteria for Lenders’ Mortgage Insurance in RMBS here APAC Residential Mortgage Criteria - Amended here APAC Residential Mortgage Criteria Addendum – Australia - Amended here Counterparty Criteria for Structured Finance and Covered Bonds here Counterparty Criteria for Structured Finance and Covered Bonds: Derivative Addendum 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 WEB SITE AT 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 MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE. 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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