Fitch Affirms Series Harvey 2015-1 Trust at 'AAAsf'; Outlook Stable

(The following statement was released by the rating agency)SYDNEY, February 03 (Fitch) Fitch Ratings has affirmed the ratings of Series Harvey 2015-1 Trust's (Harvey 2015-1) Class A notes at 'AAAsf'. The transaction is a securitisation of Australian conforming residential full-documentation mortgages originated by Credit Union Australia Limited. The rating action is as follows (note balances are at 31 December 2015): AUD554m Class A notes (ISIN AU0000HTTHA1) affirmed at '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 pool have remained in line with expectations.As per the APAC Residential Mortgage Criteria, the default model was not re-run for this rating action as the outstanding ratings are 'AAAsf' and a review of pre-determined performance triggers indicates that the transaction displays stable asset performance.At 31 December 2015, 30+ days arrears were low at 0.22%, below Fitch's 3Q15 Dinkum RMBS index of 0.91%. The reported weighted average (WA) loan/value ratio (LVR) was 64% at 31 December 2015 and since transaction close there have been no defaults. The transaction has 100% lender's mortgage insurance (LMI) coverage, with 97.2% of cover provided by QBE Lenders' Mortgage Insurance Limited (Insurer Financial Strength Rating: AA-/Stable) and 2.8% by Genworth Financial (N:GNW) Mortgage Insurance Pty Ltd (Insurer Financial Strength Rating: A+/Stable).RATING SENSITIVITIESSequential pay-down has increased credit enhancement for the Class A notes, which can withstand many multiples of the latest reported arrears. The Class A notes are independent of any potential downgrades to the LMI providers' ratings.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 loan files focusing on the underwriting procedures conducted by Credit Union Australia 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.Initial Key Rating Drivers and Rating Sensitivities are described further in the New Issue report dated 25 February 2015.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. Contacts: Lead Surveillance AnalystKatie BrookesAnalyst+61 2 8256 0364Fitch Australia Pty LtdLevel 15, 77 King St, Sydney, NSW 2000Committee ChairpersonNatasha 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.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 https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=799248Series 2015-1 Harvey Trust https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=862857Series 2015-1 Harvey Trust - Appendix https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=862858Additional Disclosures Dodd-Frank Rating Information Disclosure Form https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr _id=999001Solicitation Status https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=999001Endorsement 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.