Fitch Affirms Kingfisher Trust 2008-1 at 'AAAsf'/Stable

Wed Mar 26, 2014 1:47am EDT

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(The following statement was released by the rating agency) SYDNEY, March 26 (Fitch) Fitch Ratings has affirmed the ratings of Kingfisher Trust 2008-1's (Kingfisher 2008-1) Class A notes at 'AAAsf'. The transaction is backed by Australian conforming residential mortgages originated by Australia and New Zealand Banking Group (ANZ, AA-/Stable/F1+). The rating action is as follows: AUD38.6bn Class A (ISIN AU3FN0016325) affirmed at 'AAAsf'; Outlook Stable. KEY RATING DRIVERS The affirmation reflects the fact that the credit quality and performance of the loans in the collateral pool have remained in line with Fitch's expectations, and Fitch's expectations of Australia's economic conditions. The transaction remains within its substitution period, with principal collections being used to purchase additional receivables. The transaction's performance has been within Fitch's expectations, with low levels of defaults and arrears. As at 28 February 2014, 30+ days arrears were at 1.05%, below the latest Dinkum RMBS Index level of 1.21% at 4Q13. Since closing, the transaction as experienced AUD379,867 of losses, with lenders' mortgage insurance and excess spread covering all losses. ANZ Lenders Mortgage Insurance covers 40.6% of the pool. Kingfisher Trust 2008-1 Fund's revolving period ends in May 2025. Fitch is comfortable with the long revolving period because the transaction's portfolio stratifications and ANZ's product mix have not changed materially since closing in 2008, and the portfolio is performing as expected. RATING SENSITIVITIES A significant and unexpected increase in delinquencies, defaults and losses would be necessary before any negative rating action were to be considered, which is unlikely, given the underlying quality of the pool and low levels of arrears to date. Contacts: Lead surveillance analyst Hai Duong Le Analyst +61 2 8256 0358 Fitch Australia Pty Ltd., Level 15, 77 King St, Sydney, NSW 2000 Committee Chairperson Alison Ho Senior Director +85 2 2263 9937 The source of information used to assess these ratings is Australia and New Zealand Banking Group. 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 - Amended" dated 1 August 2013, "APAC Residential Mortgage Criteria Addendum - Australia - Amended", 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. Media Relations: Iselle Gonzalez, Sydney, Tel: +61 2 8256 0326, Email: iselle.gonzalez@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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