OREANDA-NEWS. Fitch Ratings has affirmed two classes of notes issued through Kingfisher NZ Trust 2008-1, a transaction backed by pools of New Zealand conforming residential mortgages originated by ANZ Bank New Zealand Limited (ANZNZ, AA-/Stable/F1+). The rating actions are as follows:

Class A notes affirmed at 'F1+sf'; and
NZD6,636.8m, Class B2 (ISIN NZKNZD1022G6) notes affirmed at 'AAAsf'; Outlook Stable.

KEY RATING DRIVERS
The affirmations reflect Fitch's view that available credit enhancement is sufficient to support the notes' current ratings, and the agency's expectations of New Zealand's economic conditions. The credit quality and performance of the loans in the collateral pool have remained in line with Fitch's expectations.

As at end-December 2014, loans in 30+ days arrears accounted for 0.45% of the underlying mortgage balance, and have tracked below 0.8% for the life of the transaction. Any losses have been entirely covered by excess spread.

RATING SENSITIVITIES
The 'AAAsf' modelled loss severity was 63.4%. At this level the Class B2 notes could withstand default rates of 24.5%. The analysis excludes credit to excess spread, which has been strong and stable for the transaction.

Kingfisher NZ Trust 2008-1 remains within its substitution period, ending in October 2018. Fitch is comfortable with the long revolving period because the portfolio stratifications have not changed significantly since initial issue, ANZNZ's product mix has not materially changed over this time, and the portfolio is performing as expected.