(Repeat for additional subscribers)
July 12 (The following statement was released by the rating agency)
Fitch Ratings has upgraded four classes of Flexi ABS
Trust 2012-1 and affirmed one, as shown below. The transaction is a
securitisation backed by small balance consumer loan receivables due October
2016. The notes were issued by Perpetual Corporate Trust Limited in its
capacity as trustee of Flexi ABS Trust 2012-1.
AUD69.79m Class A2 notes (ISIN AU3FN0016218): affirmed at 'AAAsf'; Outlook
AUD20.06m Class B notes (ISIN AU3FN0016226): upgraded to 'AAAsf' from 'AAsf';
AUD8.2m Class C notes (ISIN AU3FN0016234): upgraded to 'AAsf' from 'Asf';
AUD4.56m Class D notes (ISIN AU3FN0016242): upgraded to 'BBB+sf' from 'BBBsf';
AUD3.65m Class E notes (ISIN AU3FN0016259): upgraded to 'BB+sf' from 'BBsf';
Class A1 notes were paid in full on 6 February 2013
KEY RATING DRIVERS
The transaction has performed better than Fitch's initial expectations since
closing on 9 August 2012. Total net losses have been well below Fitch's base
case to date and excess spread has been more than sufficient to cover any losses
As at 31 May 2013, the 30+days and 90+ day delinquency rates were 1.62% and 0.3%
of the collateral pool. Cumulative losses since closing have been low, totalling
AUD2.04m, below Fitch's expected losses of AUD4.22m. The weighted average
remaining term and weighted average seasoning were both17 months, compared with
22 and seven months, respectively, at end-August 2012. As of May 2013, the
liquidity reserve was AUD2.3m. The collateral pool consisted of 61,219 loans
with a total portfolio balance of AUD113.05m and an average contract balance of
The prospect for downgrades is considered remote at present given the current
performance of the pool, as well as adequate excess spread and subordination.
The consumer loans in the collateral pool are vulnerable to a drastic downturn
in the Australian economy.
Initial key rating drivers and rating sensitivity are described further in the
New Issue report dated 9 August 2012.
A comparison of the transaction's representations, warranties and enforcement
mechanisms (RW&Es) to those of typical RW&Es for this asset class is available
by accessing the reports and/or links given under Related Research below.