(The following statement was released by the rating agency)
SYDNEY, December 02 (Fitch) Fitch Ratings has assigned National
Limited's (NAB, AA-/Stable/F1+) Series 17-1 issue of USD1.25bn
bonds a rating of 'AAA'. The Outlook is Stable. The fixed-rate
bond is due in
February 2019 and benefits from a 12-month extendable maturity.
This brings the
total issuance from the programme to AUD13.0bn.
KEY RATING DRIVERS
The rating is based on NAB's Long-Term Issuer Default Rating
(IDR) of 'AA-', a
Discontinuity Cap (D-Cap) of 3 (moderate-high), and an asset
percentage (AP) of
89.5%, which is equivalent to Fitch's breakeven AP for a 'AAA'
supporting a 'AA' rating on a probability of default (PD) basis
and a 'AAA'
rating after giving credit for recoveries. The Outlook on the
reflects the Stable Outlook on NAB's IDR.
As of 18 October 2013, the cover pool consisted of 55,094 loans
first-ranking mortgages of Australian residential properties
with a total
outstanding balance of AUD15.3bn, and AUD1.4bn of cash.
Maturity mismatches are significant, with the weighted-average
residual life of
the assets being 16.3 years, and 6.0 years for the liabilities.
The 'AAA' rating would be vulnerable to downgrade should any of
occur: NAB's IDR was downgraded by three notches; the D-Cap fell
by more than
two categories; or if the AP that Fitch takes into account in
increased above the 'AAA' breakeven AP of 89.5%.
+61 2 8256 0361
Fitch Australia Pty Ltd., Level 15, 77 King Street, Sydney NSW
+61 2 8256 0322
+61 2 8256 0350
The source of information used to assess these ratings was
Bank. The issuer has informed Fitch that not all relevant
used in the analysis of the rated bonds is public.
Applicable criteria, 'Covered Bonds Rating Criteria', dated 4
'Counterparty Criteria for Structured Finance and Covered
Bonds', dated 13 May
2013; 'Counterparty Criteria for Structured Finance and Covered
Derivative Addendum', dated 13 May 2013 ; and 'APAC Residential
Criteria', dated 1 August 2013; 'APAC Residential Mortgage
Criteria Addendum -
Australia', dated 1 August 2013; 'Covered Bonds Rating Criteria
Liquidity & Refinance Stress Addendum' dated 3 June 2013;
'Global Criteria for
Lender's Mortgage Insurance in RMBS', dated 1 August 2013, are
Media Relations: Iselle Gonzalez, Sydney, Tel: +61 2 8256 0326,
Additional information is available at www.fitchratings.com.
Applicable Criteria and Related Research:
Global Criteria for Lendersâ€™ Mortgage Insurance in RMBS
Covered Bonds Rating Criteria
Counterparty Criteria for Structured Finance and Covered Bonds
Counterparty Criteria for Structured Finance and Covered Bonds:
APAC Residential Mortgage Criteria
APAC Residential Mortgage Criteria Addendum â€“ Australia
Covered Bonds Rating Criteria - Mortgage Liquidity & Refinance
Stress Addendum â€“
Effective 14 November 2012 to 3 June 2013
ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND
PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS
here. IN ADDITION,
ON THE AGENCY'S
FREE WEB SITE AT WWW.FITCHRATINGS.COM. PUBLISHED RATINGS,
METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S
CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE
AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE
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ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER
ON THE FITCH
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