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 said Australia and New Zealand structured finance (SF) saw stable asset performance in Q312, with 114 affirmation and two upgrades across 37 transactions. There were no downgrades during the quarter.

"Affirmations continue to prevail among rating actions in Australian and New Zealand structured finance, reflecting stable asset performance and Fitch's view that the current ratings are appropriate given the continued low level of realised and expected losses ," said James Zanesi, Director in Fitch's Structured Finance team. The upgrades were in one Australian equipment ABS, Flexi ABS Trust 2010-1 and one Australian prime RMBS, Challenger Millennium Series 2008-2 Trust.

The upgrades reflected strong build-up of credit enhancement over the life of the transactions and steady portfolio performance.

Overall, asset performance remained strong and Outlooks on most ratings remain Stable. None of the notes reviewed in Q312 was on Negative Outlook.

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