Fitch Affirms ORIX APL Trust 2010-1's Class A TBIs at 'AAAsf'

Thu Feb 27, 2014 12:40am EST

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(The following statement was released by the rating agency) TOKYO, February 27 (Fitch) Fitch Ratings has affirmed ORIX APL Trust 2010-1 as shown below. The transaction is a securitisation of non-recourse mortgage loans collateralised by multi-family rental apartments and originated by ORIX Corporation. JPY5.95bn* class A trust beneficiary interests (TBIs) affirmed at 'AAAsf'; Outlook Stable *as of 26 February 2014 KEY RATING DRIVERS The affirmation reflects Fitch's view that available credit enhancement (CE) is sufficient to support the current rating. Master-lease structures in place have continued to support stable loan performance with no defaults to date. In addition, aggregate rental income from the underlying collateral properties has been generally in line with Fitch's assumptions. Fitch believes that underlying collateral performance deterioration can be offset by growth in CE given the sequential repayment of the TBIs. RATING SENSITIVITIES An unexpected increase in the delinquency or default rate may lead to higher loss assumptions, which may, in turn, affect the rating of the TBIs. However, given the growth in CE levels to date and the master-lease structures in place, the risk of downgrade due to asset performance deterioration is considered low. Lead Surveillance Analyst Naoki Saito Director +81 3 3288 2631 Fitch Ratings Japan Limited Kojimachi Crystal City East Wing 3rd Floor 4-8 Kojimachi, Chiyoda-ku Tokyo 102-0083 Committee Chairperson Atsushi Kuroda Senior Director +81 3 3288 2692 The source of information used to assess these ratings was ORIX Bank Corporation as trustee for the transaction. Applicable criteria, "Global Structured Finance Rating Criteria", dated 24 May 2013; "Criteria for Rating CMBS in Asia-Pacific", dated 24 April 2013; and "Counterparty Criteria for Structured Finance and Covered Bonds", dated 13 May 2013, are available at www.fitchratings.com. Media Relations: Wai-Lun Wan, Hong Kong, Tel: +852 2263 9935, Email: wailun.wan@fitchratings.com. Additional information is available at www.fitchratings.com. Applicable Criteria and Related Research: Global Structured Finance Rating Criteria here Criteria for Rating CMBS in Asia-Pacific here Counterparty Criteria for Structured Finance and Covered Bonds 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 PUBLIC 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 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.

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