TEXT-Fitch affirms 3 Torrens series RMBS

(The following statement was released by the rating agency)

Oct 02 - Fitch Ratings has affirmed eight classes from three Torrens series - Series 2005-1 TORRENS Trust, Series 2005-3(E) TORRENS Trust, and TORRENS Series 2006-1(E).

The transactions are securitisations of Australian conforming residential mortgages originated by Bendigo and Adelaide Bank Limited ('A-'/Stable/'F2'). A full rating breakdown is provided below.

The affirmations reflect Fitch's view that the available credit enhancement available on the class A notes sufficient to support the Class A notes at their current rating levels.

"Although 30+ and 90+ days arrears tend to be much higher than Fitch's Dinkum indices, losses from the Torrens transactions have remained low," said James Zanesi, Director in Fitch's Structured Finance team. "Losses not covered by lenders mortgage insurance have increased over the last 12 months but are still within Fitch's expectations."

As of 31 August 2012, the 30+ day delinquencies of the collateral pools were 2.05% (Series 2005-1 TORRENS Trust), 2.1% (Series 2005-3(E) TORRENS Trust) and 2.43% (TORRENS Series 2006-1(E)).

Repayment rates have remained strong over the last year, within the 20%-40% range. Since closing, all senior notes have paid down steadily, and credit enhancement levels for class A notes have increased strongly. The increases in credit enhancement levels mean that the ratings of the senior notes are independent of the ratings of the lenders' mortgage insurance providers, QBE Lenders Mortgage Insurance Ltd (Insurer Financial Strength Rating: 'AA-'/Outlook Stable) and Genworth Financial Mortgage Insurance Pty Ltd .

Series 2005-1 TORRENS Trust: AUD155.9m Class A-2 (ISIN AU300PTT7029) affirmed at 'AAAsf'; Outlook Stable AUD32m Class B (ISIN AU300PTT7037) affirmed at 'BBsf'; Outlook Stable Series 2005-3(E) TORRENS Trust: EUR67.3m Class A-1 (ISIN XS0232548593) affirmed at 'AAAsf'; Outlook Stable AUD74.2m Class A-2 (ISIN AU300PTTA018) affirmed at 'AAAsf'; Outlook Stable AUD62m Class B (ISIN AU300PTTA026) affirmed at 'BBsf'; Outlook Stable TORRENS Series 2006-1(E): EUR76.7m Class A-1 (ISIN XS0271943978) affirmed at 'AAAsf'; Outlook Stable AUD119.6m Class A-2 (ISIN AU3AB0000069) affirmed at 'AAAsf'; Outlook Stable AUD46.5m Class B (ISIN AU3AB0000077) affirmed at 'BBsf'; Outlook Stable

((Bangalore Ratings Team, Hotline: +91 80 4135 5898 Debanjali.Ghosh@thomsonreuters.com, Group id: BangaloreRatings@thomsonreuters.com, Reuters Messaging: Debanjali.Ghosh.reuters.com@reuters.net))