Fitch Affirms FP Turbo Series 2014-1 Trust

(The following statement was released by the rating agency)SYDNEY, December 01 (Fitch) Fitch Ratings has affirmed three classes from FP Turbo 2014-1. The transaction is a securitisation of first-ranked Australian finance and operating vehicle leases receivables originated by Fleet Partners Pty Limited. The notes were issued by Perpetual Trustee Company Limited as trustee for the FP Turbo Series 2014-1 Trust. The ratings are as follows:AUD74.8m Class A notes affirmed at 'AAAsf'; Outlook Stable AUD16.6m Class B notes: affirmed at 'AAsf'; Outlook Stable AUD11.4m Class C notes: affirmed at 'Asf'; Outlook StableKEY RATING DRIVERSThe rating actions reflect Fitch's view that sequential amortisation has resulted in a build-up of credit enhancement for the rated notes with credit enhancement nearly doubling since closing. The transaction has benefited from the performance of the underlying leases that have remained within the agency's expectations. 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. At the end October 2015, the 30+days and 90+ day delinquency rates were 2.2% and 0.9% of the collateral pool, respectively. Cumulative net credit losses since closing were AUD1.27m, 0.47% of the original pool, below Fitch's expected losses. The majority of these losses were due to one customer being placed into receivership in mid-2015. Recoveries are still in the process of being received from lessee vehicle sales.Residual value risk is present within the transaction with the inclusion of operating leases. Between closing and October 2015, sales proceeds achieved from operating lease vehicles returned saw proceeds of 107% of the residual position, above Fitch's base case of 94%. The transaction includes a vehicle servicing account to enable the issuer to fund vehicle servicing obligations. This account is maintained dynamically and at present is 3.9% of the pool balance, up from 3.4% at closing.RATING SENSITIVITIES The prospect of a downgrade is considered remote at present, given the expected performance of the pool, the adequate excess spread and subordination.The transaction is currently amortising sequentially, resulting in a build-up of credit enhancement for the rated notes. A switch to pro-rata amortisation is expected, if there is sufficient build-up of subordination and performance triggers are met over the next 12 months. Cumulative losses could increase over eight times to be in line with Fitch's expected losses at the 'AAAsf' scenario at this point in the life of the transaction. Negative rating action would be considered if there was an unexpected increase in losses above expected levels that reduced excess spread and resulted in charge-offs. To date there have been no charge offs to any notes.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 Fleet Partners 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 given under Related Research below. 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 0350The source of information used to assess these ratings was Fleet Partners Pty Limited. The issuer has informed Fitch that not all relevant underlying information used in the analysis of the rated notes is public. Media Relations: Leni Vu, Sydney, Tel: +61 2 8256 0304, Email: leni.vu@fitchratings.com.Additional information is available at www.fitchratings.com.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=744175Criteria for Rating Granular Corporate Balance-Sheet Securitisations (SME CLOs) (pub. 06 Mar 2015)https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=863220EMEA Consumer ABS Rating Criteria - Auto Residual Value Addendum (pub. 24 Jun 2014)https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=750771Global Rating Criteria for CLOs and Corporate CDOs (pub. 12 Nov 2015)https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=873664Global Structured Finance Rating Criteria (pub. 06 Jul 2015)https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=867952Related Research FP Turbo Series 2014-1 Trust - Appendixhttps://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=827989Additional Disclosures Dodd-Frank Rating Information Disclosure Form https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr _id=995651Solicitation Status https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=995651Endorsement 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 PUBLIC WEBSITE '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.