Fitch Affirms National RMBS Trust 2012-1 at 'AAAsf'/Stable

(The following statement was released by the rating agency)SYDNEY, May 29 (Fitch) Fitch Ratings has affirmed the National RMBS Trust 2012-1's class A notes. The transaction is a securitisation of first-ranking Australian residential mortgages originated by Advantedge Financial Services Pty Limited (Advantedge). The ratings are as follows:AUD19,364.9m Class A notes: 'AAAsf'; Outlook Stable.KEY RATING DRIVERS The 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 remain in line with expectations. At 30 April 2016, Lenders' Mortgage Insurance (LMI) covered 16.8% of the pool; 15.2% was covered by QBE Lenders' Mortgage Insurance Limited (Insurer Financial Strength Rating AA-/Stable) and 1.6% by Genworth Financial (NYSE:GNW) Mortgage Insurance Pty Limited (Insurer Financial Strength Rating A+/Stable). All losses have been covered by LMI or excess spread. The 30+ day arrears were at 0.47%, lower than Fitch's Dinkum Index of 0.91%. The transaction's five-year substitution period ends in 2017, with the option to extend by further five-year periods. Fitch is comfortable with the long revolving period, as the portfolio stratifications have not changed significantly since initial issue, Advantedge's product mix has not materially changed over this time and the portfolio is performing as expected. RATING SENSITIVITIES The class A notes are currently independent of downgrades to the LMI provider's ratings. Due to the revolving nature of the transaction, the notes may become dependent if the transaction's portfolio changes significantly. Fitch's 'AAAsf' breakeven stressed-default rate is 12.7%. The class A notes can withstand an additional 8.7% in defaults at Fitch's 'AAAsf' loss severity.DUE DILIGENCE USAGE No third party due diligence was provided or reviewed in relation to this rating actionDATA ADEQUACY Fitch conducted a review of 10 sample loan files, focusing on the underwriting procedures conducted by Advantedge 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 under Related Research below.Contacts: Lead Surveillance Analyst Stephen LoAnalyst+61 2 8256 0379Fitch Australia Pty LtdLevel 15, 77 King St, Sydney, NSW 2000, AustraliaCommittee Chairperson Natasha VojvodicSenior Director+ 61 2 8256 0350Media Relations: Leslie Tan, Singapore, Tel: +65 67 96 7234, Email: leslie.tan@fitchratings.com.Additional information is available at www.fitchratings.comSources of Information:The sources of information used to assess these ratings are Advantedge and National Australia Bank 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 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 Representations, Warranties and Enforcement Mechanisms in Global Structured Finance Transactions (Applicable to Transactions Rated from Sept.26, 2011 until June 15, 2015) https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=863817Additional Disclosures Dodd-Frank Rating Information Disclosure Form https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr _id=1005297Solicitation Status https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=1005297Endorsement 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.