Fitch Places Class A Notes of Nifty Warehouse Trust No.2 on RWN

(The following statement was released by the rating agency)SYDNEY, July 22 (Fitch) Fitch Ratings has placed the class A notes of Nifty Warehouse Trust No.2 (Nifty 2) on Rating Watch Negative (RWN) as follows: 750m Class A notes: 'AAAsf' placed on Rating Watch NegativeThe action was taken following the publication of Fitch's "Counterparty Criteria for Structured Finance and Covered Bonds" and "Counterparty Criteria for Structured Finance and Covered Bonds: Derivative Addendum" dated 18 July 2016. Fitch will implement the criteria changes and resolve the RWN within six months from the criteria publication date. The transaction is backed by auto loans and leases originated by Nissan Financial Services Australia (NFSA). The notes were issued by Perpetual Corporate Trust Limited in its capacity as trustee of Nifty 2. KEY RATING DRIVERS The RWN reflects the absence of collateral posting provisions in the transaction documents and is viewed as a credit negative under Fitch's updated counterparty criteria. In Fitch's view, provisions to allow for collateral to be posted, in the event of a downgrade of the swap provider, are a key remedial factor to address counterparties' credit quality deterioration. RATING SENSITIVITIES The class A notes will be downgraded to 'AAsf' if collateral posting provisions are not incorporated into the transaction documents. 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 NFSA compared to its credit policy at the time of underwriting. Fitch 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: Primary Analyst Spencer Wilson Associate Director +612 82560 320Fitch Australia Pty Ltd. Level 15, 77 King St, Sydney, NSW 2000, Australia Committee Chairperson Natasha Vojvodic Senior Director +612 8256 0350Media Relations: Leslie Tan, Singapore, Tel: +65 67 96 7234, Email: leslie.tan@fitchratings.com.Additional information is available at www.fitchratings.com Sources of Information: The source of information used to assess these ratings was NSFA. 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. 18 Jul 2016)https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=884963Counterparty Criteria for Structured Finance and Covered Bonds: Derivative Addendum (pub. 18 Jul 2016)https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=884964Global 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. 27 Jun 2016)https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=883130Related 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 Solicitation Status https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=1009272Endorsement 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.