(The following statement was released by the rating agency)
SYDNEY, February 09 (Fitch) Fitch Ratings has assigned National
Limited's (NAB, AA-/Stable/F1+) Series 2014-1 issue of CHF200m
bonds a rating of 'AAA'. The Outlook is Stable. The fixed-rate
bond is due in
February 2024 and benefits from a 12-month extendable maturity.
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 (high), and an asset percentage
(AP) of 89.5%,
which is equivalent to Fitch's breakeven AP for a 'AAA' rating,
'AA' rating on a probability of default (PD) basis and a 'AAA'
giving credit for recoveries. The Outlook on the covered bonds
Stable Outlook on NAB's IDR.
As of 13 December 2013, the cover pool consisted of 60,386 loans
first-ranking mortgages of Australian residential properties
with a total
outstanding balance of AUD16.9bn.
Maturity mismatches are significant, with the weighted-average
residual life of
the assets at 17.1 years and of the liabilities at 4.5 years.
The 'AAA' rating would be vulnerable to downgrade if any of the
occurred: 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 0322
Fitch Australia Pty Ltd., Level 15, 77 King Street, Sydney NSW
+61 2 8256 0361
+61 2 8256 0388
Media Relations: Iselle Gonzalez, Sydney, Tel: +61 2 8256 0326,
The source of information used to assess these ratings was
Bank Limited. The issuer has informed Fitch that not all
information used in the analysis of the rated bonds is public.
Additional information is available at www.fitchratings.com.
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 and Refinancing Stress Addendum' dated 4 February
Criteria for Lender's Mortgage Insurance in RMBS', dated 1
August 2013, are
available at www.fitchratings.com.
Applicable Criteria and Related Research:
Covered Bonds Rating Criteria
Counterparty Criteria for Structured Finance and Covered Bonds
Counterparty Criteria for Structured Finance and Covered Bonds:
APAC Residential Mortgage Criteria - Amended
APAC Residential Mortgage Criteria Addendum â€“ Australia -
Covered Bonds Rating Criteria - Mortgage Liquidity and Refinance
Global Criteria for Lendersâ€™ Mortgage Insurance in RMBS
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PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS
here. IN ADDITION,
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