Fitch Assigns Final Ratings to National RMBS 2012-2 Trust's Class A2-R Notes

(The following statement was released by the rating agency)SYDNEY, December 20 (Fitch) Fitch Ratings has assigned final ratings to National RMBS 2012-2 Trust's Class A2-R mortgage-backed floating-rated notes. The issuance consists of notes backed by prime residential mortgages originated by Advantedge Financial Services Pty Ltd. The ratings are as follows:AUD 127.0m Class A2-R notes: 'AAAsf'; Outlook Stable.The Class A2-R notes are issued to refinance the soft bullet Class A2 notes on the refinance date of 21 December 2015. The Class A2 notes (equivalent to AUD126.7m) were repaid from the issuance of the Class A2-R notes.The Class A2 notes were originally issued in December 2012 as part of an AUD1bn RMBS issue by National Australia Bank Limited (NAB, AA-/Stable), which was a securitisation of loans originated by Advantedge Financial Services Pty Ltd. The refinance of the Class A2 notes was contemplated in the original issuance and is detailed in Fitch's new issue report, dated 12 December 2012.The notes are issued by Perpetual Trustee Victoria Limited in its capacity as trustee of National RMBS 2012-2.KEY RATING DRIVERSThe 'AAAsf' rating assigned to the Class A2-R notes is supported by the credit enhancement provided by the subordinate Class B and C notes, the lender's mortgage insurance (LMI) policies, the liquidity facility which is equivalent to 1.9% of the receivables that are not 90 days or more in arrears, and the mortgage underwriting and servicing capabilities of Advantedge Financial Services Pty Ltd and National Australia Bank Limited.RATING SENSITIVITIESUnexpected decreases in residential property value, increases in the frequency of foreclosures, and loss severity on defaulted mortgages could produce loss levels higher than Fitch's base case, which could in turn result in a negative rating action on the notes.Fitch's initial rating drivers and rating sensitivities analysis are discussed in the new issue report entitled, "National RMBS 2012-2 Trust", available at www.fitchratings.com.DUE DILIGENCE USAGE No third party due diligence was provided or reviewed in relation to this rating action.DATA ADEQUACYFitch conducted a file review of 10 sample loan files focusing on the underwriting procedures conducted by Advantedge Financial Services Pty Ltd compared to Advantedge Financial Services Pty Ltd '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.Contacts: Primary Analyst James ZanesiDirectorPhone +612 8256 0306Fitch Australia Pty Ltd., Level 15, 77 King Street, Sydney NSW 2000, Australia. Secondary Analyst David CarrollDirectorPhone +612 8256 333Committee Chairperson Natasha VojvodicSenior Director Phone +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.The source of information identified for this rating action was National Australia Bank Limited, as arrangers and the issuer's counsel King & Wood Mallesons. 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 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 National RMBS Trust 2012-2 - Appendixhttps://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=697054Additional Disclosures Dodd-Frank Rating Information Disclosure Form https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr _id=997119Solicitation Status https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=997119Endorsement 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.