OREANDA-NEWS. Publicly rated Japanese structured finance (SF) and structured credit (SC) transactions remained stable in 2Q16, with six rating affirmations and one upgrade, Fitch Ratings says.

Four out of the six affirmations were from two residential mortgage-backed security (RMBS) transactions: HYDRA III Funding Corporation and HYDRA IV Funding Corporation. The actions reflected Fitch's view that available credit enhancement levels are sufficient to support the current ratings, despite a decline in excess spread. The remaining affirmations were to two asset-backed commercial paper (ABCP) programmes.

The SC transaction MARC Finance Ltd Series 557 was upgraded to 'Asf/Stable' from 'A-sf/Stable', reflecting an upgrade of the collateral issuer's Long-Term Issuer Default Rating.

Given the performance of the underlying assets, all publicly rated Japanese SF and SC transactions have Stable or Positive Outlooks. Fitch expects asset, and in turn, rating performance to remain stable in Japanese SF transactions, supported by current macro-economic conditions.