TEXT-Fitch: Stable Rating Performance in Australia and New Zealand SF in Q312


(The following was released by the rating agency)

HONG KONG/SYDNEY, October 11 (Fitch) Fitch Ratings saidAustralia and New Zealand structured finance (SF) saw stableasset performance in Q312, with 114 affirmation and two upgradesacross 37 transactions. There were no downgrades during thequarter.

"Affirmations continue to prevail among rating actions inAustralian and New Zealand structured finance, reflecting stableasset performance and Fitch's view that the current ratings areappropriate given the continued low level of realised andexpected losses ," said James Zanesi, Director in Fitch'sStructured Finance team. The upgrades were in one Australianequipment ABS, Flexi ABS Trust 2010-1 and one Australian primeRMBS, Challenger Millennium Series 2008-2 Trust.

The upgrades reflected strong build-up of credit enhancementover the life of the transactions and steady portfolioperformance.

Overall, asset performance remained strong and Outlooks onmost ratings remain Stable. None of the notes reviewed in Q312was on Negative Outlook.

The affirmations of 114 tranches were distributed among alarge range of asset types and particularly among Australianprime RMBS (76). The rest were in auto ABS (30), equipment ABS(one), reverse mortgage RMBS (six) - all in Australia - andprime RMBS (one) in New Zealand.