(The following statement was released by the rating agency)SYDNEY, December 10 (Fitch) Fitch Ratings has affirmed the ratings of 12 tranches from six APOLLO Series residential mortgage backed securities (RMBS) transactions. The transactions are securitisations of first-ranking Australian residential mortgages originated by Suncorp-Metway Limited (A+/Stable/F1). The notes were issued by Perpetual Corporate Trust Limited, in its capacity as trustee of the Series. A list of rating actions can be found at the end of this commentary.KEY RATING DRIVERSThe affirmations reflect Fitch's view that available credit enhancement is sufficient to support the notes' current ratings, and the agency's expectations of Australia's economic conditions. The credit quality and performance of the loans in the collateral pools have remained in line with Fitch's expectations.As per the APAC Residential Mortgage criteria, the default model was not run for this rating action, as a review of pre-determined performance triggers indicates that the transactions display stable asset performance.At November 2015, 30+ day arrears for Apollo 2013-1 and Apollo 2015-1 were below Fitch's Dinkum Index of 1.12%. The 30+ day arrears for the remaining transactions were above the Index, with Apollo 2007-1E recording the highest arrears at 2.06%.Nine loans had resulted in losses totalling AUD 808,342, seven of which were in the portfolio backing Apollo 2007 1E and one loss in Apollo 2012-1. The remaining loss for Apollo 2009-1 transaction is the only new loss recorded across the transactions since the last rating action in January 2015. Losses on the underlying mortgages in the pool have been covered primarily by the lenders' mortgage insurance (LMI) provider, QBE Lenders Mortgage Insurance Pty Limited (QBE, Insurer Financial Strength Rating: AA-/Stable); the overall payout ratio has been 92.2%. The remaining losses were covered by excess spread. All loans in each of the underlying portfolios are covered by LMI from QBE.The portfolios were well seasoned at between 4.6 years (Apollo 2015-1) and 10.6 years (for Apollo 2007-1E). The weighted average loan/value (LVR) ranged between 52.2% (for Apollo 2007-1E) and 62.6% (Apollo 2015-1). Each pool is geographically concentrated in Queensland which has been taken into account in our analysis.RATING SENSITIVITIES Sequential pay-down has increased credit enhancement for the senior notes of all the transactions, with the 'AAAsf' rated notes able to withstand multiples of the latest reported arrears. The ratings are not expected to be affected due to any foreseeable change in performance. The ratings of all the APOLLO RMBS transactions' senior notes are independent of downgrades to the LMI provider's ratings.The Class B notes' ratings are unlikely to change unless there is a significant reduction in LMI claims paid and where Fitch considers that levels of excess spread are no longer adequate. DUE DILIGENCE USAGENo 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 Suncorp-Metway Limited 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.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.The rating actions are as follows:APOLLO Series 2007-1E (APOLLO 2007-1E):AUD 113.6m Class 1A (ISIN AU0000AOYHA7) affirmed at 'AAAsf'; Outlook Stable;EUR 82.6m Class 2A (ISIN XS0299266972) affirmed at 'AAAsf'; Outlook Stable; andAUD 15.8m Class B (ISIN AU3FN0002580) affirmed at 'BBsf'; Outlook Stable.APOLLO Series 2009-1 (APOLLO 2009-1):AUD 171.9m Class A3 (ISIN AU3FN0008697) affirmed at 'AAAsf'; Outlook Stable; andAUD 147.8m Class B (ISIN AU3FN0008975) affirmed at 'BBsf'; Outlook Stable.APOLLO Series 2011-1 (APOLLO 2011-1):AUD 188.0m Class A1 (ISIN AU3FN0014502) affirmed at 'AAAsf'; Outlook Stable;AUD 172.7m Class A2 (ISIN AU3FN0014510) affirmed at 'AAAsf'; Outlook Stable; andAUD 44.9m Class AB (ISIN AU3FN0014528) affirmed at 'AAAsf'; Outlook Stable.APOLLO Series 2012-1 (APOLLO 2012-1):AUD 367.9m Class A1 (ISIN AU3FN0016515) affirmed at 'AAAsf'; Outlook Stable; andAUD 44.7m Class AB (ISIN AU3FN0016523) affirmed at 'AAAsf'; Outlook Stable.APOLLO Series 2013-1 (APOLLO 2013-1):AUD 493.7m Class A (ISIN AU0000AORHA1) affirmed at 'AAAsf'; Outlook Stable.APOLLO Series 2015-1 (APOLLO 2015-1):AUD 929.2m Class A (ISIN AU3FN0026548) affirmed at 'AAAsf'; Outlook Stable.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 0350Media 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, Suncorp-Metway Limited. 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 Criteria for Lendersâ 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 APOLLO Series 2015-1 Trust https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=863421APOLLO Series 2015-1 Trust - Appendixhttps://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=863422Apollo Series 2007-1E Trust (Australia RMBS) https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=325620Apollo Series 2009-1 Trust (Australia RMBS) https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=461836Apollo Series 2011-1 Trust https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=659656Apollo Series 2011-1 Trust Appendixhttps://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=659657Apollo Series 2012-1 Trust https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=688449Apollo Series 2012-1 Trust - Appendixhttps://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=688610Apollo Series 2013-1 Trust - New Issue https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=709157Apollo Series 2013-1 Trust - New Issue Appendixhttps://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=709158Representations, 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=996524Solicitation Status https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=996524Endorsement 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.