Fitch Affirms Crusade Trust No. 2P of 2008; Outlook Stable

(The following statement was released by the rating agency)SYDNEY, January 22 (Fitch) Fitch Ratings has affirmed the ratings of Crusade Trust No. 2P of 2008 as shown below (the note balance is as of the latest quarterly reporting September 2015). The transaction is a securitisation backed by a pool of Australian residential mortgages originated by Westpac Banking Corporation (Westpac, AA-/Stable/F1+), which became successor in law to St.George Bank Ltd in March 2010. The rating action is as follows:AUD28,700m Class A (AU3FN0019931) notes affirmed at 'AAAsf'; Outlook Stable.KEY RATING DRIVERSThe affirmation reflects Fitch's view that the available credit enhancement is sufficient to support the notes' current rating, and the agency's expectations of Australia's economic conditions. Credit quality and performance of the underlying loans have remained within the agency's expectations.At 30 September 2015, 30+ days arrears were 1.3%, above Fitch's Dinkum RMBS Prime Index. Lender's mortgage insurance (LMI) is provided by QBE Lenders' Mortgage Insurance Limited (Insurer Financial Strength Rating AA-/Stable), Westpac Lenders Mortgage Insurance Limited (WLMI, formerly St.George Insurance Australia Pty Limited, Insurer Financial Strength Rating AA-/Stable), and Genworth Financial (N:GNW) Mortgage Insurance Pty Ltd (Insurer Financial Strength Rating A+/Stable). As of 30 September 2015, 31.4% of the pool had LMI, however, any further advances granted after the original settlement of a loan may not necessarily be covered by LMI. This is taken into consideration in the analysis through a modification of the quality adjustment. RATING SENSITIVITIESThe Class A notes are LMI dependent and the transaction is sensitive to an increase in foreclosures due to the lack of buffer.DUE DILIGENCE USAGE No third party due diligence was provided or reviewed in relation to this rating action.DATA ADEQUACY Fitch conducted a file review of 10 sample loan files focusing on the underwriting procedures conducted by Westpac Banking Corporation compared to its credit policy at the time of underwriting. Fitch has checked the consistency and plausibility of the information and no material discrepancies were noted that would impact Fitch's rating analysis.This transaction currently has an 11 year revolving period ending in January 2019. Fitch is comfortable with the long revolving period because the portfolio stratifications have not changed significantly since issuance, Westpac's product mix has not materially changed over this same period, and the portfolio is performing as expected.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 under Related Research below.Contacts: Lead Surveillance Analyst Katie BrookesStructured Finance AnalystPhone +612 8256 0364Fitch Australia Pty Ltd., Level 15, 77 King St, Sydney, NSW 2000, AustraliaCommittee Chairperson Natasha VojvodicSenior Director+612 8256 0350Media Relations: Leni Vu, Sydney, Tel: +61 2 8256 0304, Email: leni.vu@fitchratings.com.Additional information is available at www.fitchratings.com.Applicable Criteria APAC Residential Mortgage Criteria (pub. 23 Jun 2015)https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=867437Counterparty Criteria for Structured Finance and Covered Bonds (pub. 14 May 2014)https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=744158Counterparty Criteria for Structured Finance and Covered Bonds: Derivative Addendum (pub. 14 May 2014)https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=744175Global Criteria for Lenders’ Mortgage Insurance in RMBS (pub. 23 Jun 2015)https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=865195Global Structured Finance Rating Criteria (pub. 06 Jul 2015)https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=867952Related Research Representations, Warranties and Enforcement Mechanisms in Global Structured Finance Transactions https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=799248Additional Disclosures Dodd-Frank Rating Information Disclosure Form https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr _id=998213Solicitation Status https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=998213Endorsement Policy https://www.fitchratings.com/jsp/creditdesk/PolicyRegulation.faces?context=2&det ail=31ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S FREE WEB SITE AT WWW.FITCHRATINGS.COM. PUBLISHED RATINGS, CRITERIA, AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE, AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE CODE OF CONDUCT SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE. Fitch Australia Pty Ltd holds an Australian financial services licence (AFS licence no. 337123) which authorises it to provide credit ratings to wholesale clients only. Credit ratings information published by Fitch is not intended to be used by persons who are retail clients within the meaning of the Corporations Act 2001.