Fitch Affirms 15 SMART ABS Transactions

(The following statement was released by the rating agency)SYDNEY, December 10 (Fitch) Fitch Ratings has affirmed 69 classes from 15 SMART transactions. The transactions are securitisations of Australian auto and equipment receivables originated by Macquarie Leasing Pty Limited (Macquarie Leasing). The notes are issued by Perpetual Trustee Company Limited in its capacity as trustee of the Series. The rating actions are listed at the end of this commentary.KEY RATING DRIVERSThe affirmations reflect Fitch's view that available credit enhancement is sufficient to support the notes at their current rating levels, the performance of the underlying assets which remain within the agency's expectations and Fitch's expectations of Australia's economic conditions.At November 2015, net losses experienced since closing have been below 1.04% and 30+ day delinquencies for all transactions were tracking under 1.3%. SMART ABS Series 2013-3 Trust had the highest levels of arrears while SMART ABS Series 2015-1US Trust had the lowest at 0.4%. Total net losses have been below Fitch's base cases to date and excess spread has been more than sufficient to cover any losses incurred. The 2012-1US, 2012-2US, 2012-4US, 2013-1US, 2013-2US, 2013-3, 2013-4PP, 2014-1US, 2014-2E and 2014-3PP transactions have been paying principal on a pro-rata basis and are expected to continue until their respective call. 2014-4, 2015-1US, 2015-2 and 2015-3US continue to pay principal on a sequential basis as of the November 2015 payment date. The payment method is expected to switch to pro-rata once their respective pro-rata paydown triggers have been met. The SMART U Warehouse commitment limit is AUD500m and at October 2015, the pool consisted of 15,183 contracts with a total portfolio balance of AUD457.3m, averaging AUD30,120 per contract.RATING SENSITIVITIES The prospect for downgrades are considered remote given the level of subordination and excess spread available on all transactions. A significant and unexpected increase in delinquencies, defaults and losses would be necessary before any negative rating action would be considered. Detailed surveillance data for all transactions are available at www.fitchratings.com.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 lease files focusing on the underwriting procedures conducted by Macquarie Leasing Pty 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 ratings are as follows:SMART Series 2012-1US Trust:USD54.5m Class A-4a affirmed at 'AAAsf'; Outlook Stable;AUD2.2m Class B affirmed at 'AAsf'; Outlook Stable;AUD3.0m Class C affirmed at 'Asf'; Outlook Stable;AUD2.7m Class D affirmed at 'BBBsf'; Outlook Stable; andAUD2.5m Class E affirmed at 'BBsf'; Outlook Stable.SMART Series 2012-2US Trust:USD0.2m Class A-3a affirmed at 'AAAsf'; Outlook Stable;USD0.3m Class A-3b affirmed at 'AAAsf'; Outlook Stable;USD27m Class A-4a affirmed at 'AAAsf'; Outlook Stable;USD51m Class A-4b affirmed at 'AAAsf'; Outlook Stable;AUD3.4m Class B affirmed at 'AAsf'; Outlook Stable;AUD4.6m Class C affirmed at 'Asf'; Outlook Stable;AUD4.2m Class D affirmed at 'BBBsf'; Outlook Stable; andAUD3.8m Class E affirmed at 'BBsf'; Outlook Stable.SMART ABS Series 2012-4US Trust:USD32.1 Class A-3a affirmed at 'AAAsf'; Outlook Stable;USD11.0m Class A-3b affirmed at 'AAAsf'; Outlook Stable;USD82.5m Class A-4a affirmed at 'AAAsf'; Outlook Stable;USD20m Class A-4b affirmed at 'AAAsf'; Outlook Stable;AUD3.3m Class B affirmed at 'AAsf'; Outlook Stable;AUD11.0m Class C affirmed at 'Asf'; Outlook Stable;AUD7.5m Class D affirmed at 'BBBsf'; Outlook Stable; andAUD6.8m Class E affirmed at 'BBsf'; Outlook Stable.SMART ABS Series 2013-1US Trust:USD94.8m Class A-4a affirmed at 'AAAsf'; Outlook Stable;USD22.4m Class A-4b affirmed at 'AAAsf'; Outlook Stable;AUD2.6m Class B affirmed at 'AAsf'; Outlook Stable;AUD8.6m Class C affirmed at 'Asf'; Outlook Stable;AUD5.9m Class D affirmed at 'BBBsf'; Outlook Stable; andAUD5.3m Class E affirmed at 'BBsf'; Outlook Stable.SMART ABS Series 2013-2US Trust:USD7.1m Class A-3a affirmed at 'AAAsf'; Outlook Stable;USD23.7m Class A-3b affirmed at 'AAAsf'; Outlook Stable;USD137.5m Class A-4a affirmed at 'AAAsf'; Outlook Stable;USD65m Class A-4b affirmed at 'AAAsf'; Outlook Stable;AUD5.5m Class B affirmed at 'AAsf'; Outlook Stable;AUD18.3m Class C affirmed at 'Asf'; Outlook Stable;AUD12.5m Class D affirmed at 'BBBsf'; Outlook Stable; andAUD11.3m Class E affirmed at 'BBsf'; Outlook Stable.SMART ABS Series 2013-3 Trust:AUD159.6m Class A affirmed at 'AAAsf'; Outlook Stable; andAUD6.0m Class B affirmed at 'AAsf'; Outlook Stable.SMART ABS Series 2013-4PP Trust:AUD320.0m Class A affirmed at 'AAAsf'; Outlook Stable; andAUD12.0m Class B affirmed at 'AAsf'; Outlook Stable.SMART ABS Series 2014-1US Trust:USD61.2m Class A-3a affirmed at 'AAAsf'; Outlook Stable;USD84.0m Class A-3b affirmed at 'AAAsf'; Outlook Stable;USD50m Class A-4a affirmed at 'AAAsf'; Outlook Stable;USD60m Class A-4b affirmed at 'AAAsf'; Outlook Stable;AUD8.3m Class B affirmed at 'AAsf'; Outlook Stable;AUD15.2m Class C affirmed at 'Asf'; Outlook Stable;AUD15.2m Class D affirmed at 'BBBsf'; Outlook Stable; andAUD13.8m Class E affirmed at 'BBsf'; Outlook Stable.SMART ABS Series 2014-2E Trust:AUD306.1m Class A-A affirmed at 'AAAsf'; Outlook Stable;EUR123.0m Class A-E affirmed at 'AAAsf'; Outlook Stable; andAUD21.6m Class B affirmed at 'AAsf'; Outlook Stable.SMART ABS Series 2014-3PP Trust:AUD378.5m Class A affirmed at 'AAAsf'; Outlook Stable; andAUD16.8m Class B affirmed at 'AAsf'; Outlook Stable.SMART ABS Series 2014-4 Trust:AUD728.2m Class A affirmed at 'AAAsf'; Outlook Stable; andAUD31.3m Class B affirmed at 'AAsf'; Outlook Stable.SMART ABS Series 2015-1US Trust:USD55.3m Class A-2a affirmed at 'AAAsf'; Outlook Stable;USD58.0m Class A-2b affirmed at 'AAAsf'; Outlook Stable;USD69.0m Class A-3a affirmed at 'AAAsf'; Outlook Stable;USD50.0m Class A-3b affirmed at 'AAAsf'; Outlook Stable;AUD197.0m Class A-4 affirmed at 'AAAsf'; Outlook Stable; andAUD15.1m Class B affirmed at 'AAsf'; Outlook Stable.SMART ABS Series 2015-2 Trust:AUD644.2m Class A affirmed at 'AAAsf'; Outlook Stable; andAUD22.5m Class B affirmed at 'AAsf'; Outlook Stable.SMART ABS Series 2015-3US Trust:USD126.0 Class A-1 affirmed at 'F1+sf'; USD124.0m Class A-2b affirmed at 'AAAsf'; Outlook Stable;USD95.0m Class A-3a affirmed at 'AAAsf'; Outlook Stable;USD25.0m Class A-3b affirmed at 'AAAsf'; Outlook Stable;AUD181.0m Class A-4 affirmed at 'AAAsf'; Outlook Stable; andAUD16.0m Class B affirmed at 'AAsf'; Outlook Stable.SMART U Warehouse Trust:AUD500.0m Class A notes: 'AAAsf'; Outlook Stable.Contacts: Surveillance Analyst Hai Duong LeAssociate DirectorPhone +61 2 8256 0358Fitch Australia Pty Ltd, Level 15, 77 King Street, Sydney, NSW 2000Committee 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.The source of information used to assess these ratings was Macquarie Leasing Pty Limited. The issuer has informed Fitch that not all relevant underlying information used in the analysis of the rated notes is public.Applicable Criteria Counterparty 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 Consumer ABS Rating Criteria (pub. 03 Dec 2015)https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=874105Global 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=867166SMART ABS Series 2012-2US Trust https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=681670SMART ABS Series 2012-2US Trust - Appendixhttps://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=681671SMART ABS Series 2012-4US Trust https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=691469SMART ABS Series 2012-4US Trust - Appendixhttps://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=691470SMART ABS Series 2013-1US Trust https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=699449SMART ABS Series 2013-1US Trust - Appendixhttps://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=699450SMART ABS Series 2013-1US Trust - Appendixhttps://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=698631SMART ABS Series 2013-2US Trust https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=709036SMART ABS Series 2013-2US Trust - Appendixhttps://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=709035SMART ABS Series 2013-3 Trust https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=719115SMART ABS Series 2013-3 Trust Appendixhttps://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=719116SMART ABS Series 2014-1US Trust - Amended https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=739377SMART ABS Series 2014-1US Trust Appendixhttps://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=739378SMART ABS Series 2014-2E Trust https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=750193SMART ABS Series 2014-2E Trust - Appendixhttps://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=750194SMART ABS Series 2014-3PP Trust https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=773128SMART ABS Series 2014-3PP Trust - Appendixhttps://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=773129SMART ABS Series 2014-4 Trust https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=813348SMART ABS Series 2015-1US Trust https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=863743SMART ABS Series 2015-1US Trust - Appendixhttps://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=863744SMART ABS Series 2015-2 Trust https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=866439SMART ABS Series 2015-2 Trust - Appendixhttps://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=866440SMART ABS Series 2015-3US Trust https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=872966SMART ABS Series 2015-3US Trust - Appendixhttps://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=872967SMART Series 2012-1US Trust https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=674291SMART Series 2012-1US Trust - Appendixhttps://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=674293SMART U Warehouse Trust - Appendixhttps://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=748470Smart ABS Series 2014-4 Trust - Appendix https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=814648Additional Disclosures Dodd-Frank Rating Information Disclosure Form https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr _id=996381Solicitation Status https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=996381Endorsement Policy https://www.fitchratings.com/jsp/creditdesk/PolicyRegulation.faces?context=2&det ail=31ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. 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