OREANDA-NEWS. Fitch Ratings has assigned Fastnet Securities 12 DAC's notes expected ratings, as follows:

Class A: 'AAA(EXP)sf', Outlook Stable

Class B: 'AA(EXP)sf', Outlook Stable

Class C: 'A+(EXP)sf', Outlook Stable

Class Z: Not rated

The assignment of the final ratings is contingent on the receipt of final documents conforming to information already received.

The transaction is a securitisation of owner-occupied mortgages originated in Ireland by Permanent TSB plc

KEY RATING DRIVERS

Seasoned Owner-Occupied Loans: The pool consists of a well-seasoned (weighted average (WA) seasoning of 95 months) portfolio of owner-occupied loans. There are no investment loans, a small number of interest-only loans, and no borrower is currently more than one month in arrears. In Fitch's opinion, this portfolio represents a positive selection from Permanent TSB's overall mortgage book.

Peak-Year Origination: This pool has a high percentage (37.9%) of peak-year lending (2005-2007). Irish house prices fell nearly 50% between September 2007 and March 2013, leaving many borrowers in negative equity. While recent house price increases have started to improve this position, 8.8% of borrowers in this portfolio have an indexed WA current loan-to-value (WA CLTV) greater than 100%.

Restructured Loans: Fitch was provided with detailed information on restructured loans for the portfolio; 20.1% of the loans have undergone some form of loan restructure, with 18.2% having occurred more than two years ago. Fitch has applied an increase to the foreclosure frequency (FF) for restructured loans (between 10% and 70%), based on the type of restructure and the time since the restructure was completed.

Provisioning Mechanism: A default provisioning mechanism is in place, benefiting the transaction cash flows by recognising losses likely to be incurred in the future: (i) up to 50% of the principal balance of a loan when it reaches 180 days in arrears; (ii) 75% when 270 days in arrears; and (iii) 100% when 359 days in arrears. This is helpful for Irish RMBS, given the length of time required to complete repossession activity.

RATING SENSITIVITIES

Material increases in the frequency of defaults and loss severity on defaulted receivables producing losses greater than Fitch's base case expectations may result in negative rating actions on the notes. Fitch's analysis revealed that a 30% increase in the WA foreclosure frequency, along with a 30% decrease in the WA recovery rate, would imply a downgrade of the class A notes to 'A+sf' from 'AAAsf'.

More detailed model implied ratings sensitivity can be found in the presale report which is available at www. fitchratings. com

DUE DILIGENCE USAGE

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

Fitch reviewed the results of a third party assessment conducted on the asset portfolio information, which indicated errors or missing data related to the borrower income verification information. These findings were considered in this analysis by assuming that a number of borrowers equal to 5% of the asset pool did not have full income verification. Fitch applied an upward adjustment of 35% to the foreclosure frequency for these borrowers, in line with its criteria for non-verified income. This was applied through a lender adjustment, as set out more fully in the presale report.