OREANDA-NEWS. Fitch Ratings has assigned ratings to Q Card Trust's class A Series 2016-1 floating-rate notes issued to refinance maturing class A Series 2014-1 notes of the same amount. The ratings are as follows:

- NZD89.5m Class A1a notes: 'AAAsf'; Outlook Stable

The issuance consists of notes backed by credit card receivables originated by Consumer Finance Limited, a subsidiary of Fisher & Paykel Finance Limited. The notes are issued by The New Zealand Guardian Trust Company Limited in its capacity as trustee of the Q Card Trust.

Fitch confirms ratings of all existing rated-notes for Q Card Trust following the above issuance.

The transaction has a collateral pool of NZD377m of consumer receivables, comprising 208,000 active customers with an average balance outstanding of approximately NZD1,800.

KEY RATING DRIVERS

Q Card Trust has a stable performance with the key rating drivers of yield, monthly payment rates, charge-offs and arrears within Fitch's steady-state assumptions.

RATING SENSITIVITIES

Fitch has modelled three scenarios to evaluate the rating's sensitivity of the notes: 1) increased charge-offs; 2) reduced yield; and 3) reduced monthly payment rate compared with Q Card Trust's expected performance.

The ratings are sensitive to an increase in defaults and a reduction in monthly payment rates, with less sensitivity to lower yield.

USE OF THIRD-PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G-10

Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action.