(Repeat for additional subscribers)
June 7 (The following statement was released by the rating agency)
Fitch Ratings has affirmed HYDRA III Funding
Corporation's series 1 bonds. The transaction is a securitisation of residential
mortgage loan receivables, including those backed by investment properties,
originated by multiple originators in Japan. The rating actions are listed
JPY5.26bn* Class S1 bonds affirmed at 'AAAsf'; Outlook Stable
JPY1.28bn* Class S2 bonds affirmed at 'AAAsf'; Outlook Stable
JPY0.23bn* Class J bonds affirmed at 'A-sf'; Outlook Stable
* as of 6 June 2013
Key Rating Drivers
The affirmations reflect Fitch's view that available credit enhancement (CE)
levels are sufficient to support the current ratings.
The CE levels at both the underlying level and transaction level have been
The performance of the five remaining underlying pools has been stable, with no
significant deterioration since the previous rating action in July 2012.
An unexpected increase in the delinquency or default rate may lead to higher
loss assumption which may, in turn, affect the ratings of the bonds. However,
given the growth in CE levels to date, the risk of downgrade due to asset
performance deterioration is considered to be low.
The originators of the remaining underlying assets are Tsukuba Bank, Ltd.
(formerly The Ibaraki Bank, Ltd.), Sumitomo Mitsui Trust Loan & Finance Co., Ltd
(formerly Life Housing Loan, Co., Ltd.), SBI Mortgage Co., Ltd. (formerly
GOODLOAN Co., Ltd.) and The Prudential Life Insurance Co., Ltd. (formerly Aoba
Life Insurance Co., Ltd.).