Fitch: APAC 2Q16 Covered Bonds Collateral Quality Stays Stable

(The following statement was released by the rating agency)Link to Fitch Ratings' Report: APAC Covered Bonds Quarterly - 2Q16https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=886061SYDNEY, August 17 (Fitch) Fitch Ratings says credit risk on the cover pools has remained stable for most programmes in the Asia-Pacific region. The exception is ASB Bank Limited (AA-/Stable/F1+) where the cover pool's credit risk deteriorated, following a recent top-up of NZD2bn of residential mortgages in May. The change to the cover pool composition resulted in a decrease of the programme's 'AAA' breakeven AP to 85%. This information is contained in the latest edition of Fitch's 'APAC Covered Bonds Quarterly - 2Q16'.The report includes commentary on rating actions on programmes and covered bond issuance in the region that occurred during the quarter.It also outlines the proposed changes in the recently published exposure draft to its covered-bond criteria. Fitch does not expect the proposed changes to the criteria to have a ratings impact for programmes in Asia Pacific.The 'APAC Covered Bonds Quarterly' includes aggregate information on the 13 programmes publicly rated by Fitch, grouped by each country and the individual statistics of each programme. It also includes links to individual covered-bond programme research and the latest reports relevant to the Asia-Pacific region. Data reported in the 'APAC Covered Bonds Quarterly - 2Q16' is at 30 June 2016. The report can be accessed at www.fitchratings.com or via the link above.Contacts:Claire HeatonSenior Director+61 2 8256 0361Fitch Australia Pty LtdLevel 1577 King StreetSydney NSW 2000Ben McCarthyManaging Director+61 2 8256 0388Vickie BrumwellSenior Director+61 2 8256 0305Media Relations: Leslie Tan, Singapore, Tel: +65 67 96 7234, Email: leslie.tan@fitchratings.com.Additional information is available on www.fitchratings.comALL 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.