(The following statement was released by the rating agency)SYDNEY, October 08 (Fitch) Fitch Ratings has affirmed the ratings of Kingfisher (LONDON:KGF) Trust 2008-1 Class A notes at 'AAAsf,' as shown below. The transaction is a securitisation of first-ranking Australian conforming residential mortgages originated by Australia and New Zealand Banking Group (ANZ, AA-/Stable/F1+). The rating action is as follows:AUD67.7bn Class A notes (ISIN AU3FN0016325) affirmed at 'AAAsf'; Outlook Stable.KEY RATING DRIVERSThe affirmation reflects Fitch's view that available credit enhancement is sufficient to support the notes' current ratings, our expectations of Australia's economic conditions, and the fact that the credit quality and performance of the loans in the collateral pool have remained in line with expectations. The transaction remains within its substitution period, with principal collections being used to purchase additional receivables.The transaction has recorded low levels of defaults and arrears. At 31 August 2015, 30+ days arrears stood at 0.3%, below Fitch's Dinkum Index of 1.12%. There have been nine foreclosures since issuance, resulting in a loss of AUD379,867. Since closing, the transaction has experienced losses of AUD379,867, covered by lenders' mortgage insurance (LMI) and excess spread. ANZ Lenders Mortgage Insurance covers 26.1% of the pool; no credit is given for this in the analysis.Kingfisher Trust 2008-1 Fund's revolving period ends in May 2025. Fitch is comfortable with the long revolving period because portfolio stratifications have not changed significantly since closing, ANZ's product mix has not materially changed over this time, and the portfolio is performing as expected.RATING SENSITIVITIESFitch's 'AAAsf' breakeven stressed default rate is 11.3%. The transaction could withstand an additional 2.37% at Fitch's 'AAAsf' loss severity. The ratings are LMI independent and therefore not sensitive to downgrades to the LMI providers' ratingsDUE 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 ANZ compared to ANZ's 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.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 Hai Duong LeAssociate Director+61 2 8256 0358Fitch Australia Pty Ltd., Level 15, 77 King St, Sydney, NSW 2000, AustraliaCommittee Chairperson
Natasha VojvodicSenior Director+61 2 8256 0350
Media Relations: Leni Vu, Sydney, Tel: +61 2 8256 0304, Email: leni.vu@fitchratings.com.Additional information is available at www.fitchratings.com.Sources of Information:The source of information used to assess these ratings was the servicer, Australia and New Zealand Banking Group. The issuer has informed Fitch that not all relevant underlying information used in the analysis of the rated notes is public.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 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=867166Additional Disclosures Dodd-Frank Rating Information Disclosure Form https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr _id=991973Solicitation Status https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=991973Endorsement 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.