OREANDA-NEWS. February 02, 2015. Fitch Ratings has affirmed the ratings of PUMA Series 2014-3P (PUMA 2014-3P). The transaction is backed by a pool of first ranking Australian residential mortgages originated by Macquarie Bank Limited's (A/Stable/F1) PUMA securitisation programme.

The ratings actions are as follows:

PUMA 2014-3P:
AUD1,500m Class A (ISINAU3FN0024196) notes affirmed at 'AAAsf'; Outlook Stable; and
AUD49m Class B1 (ISIN AU3FN0024204) 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 Australia's economic conditions. The credit quality and performance of the loans in the collateral pool have also remained in line with expectations.

As at end-December 2014, 30+ days arrears stood at 0.2%, below Fitch's 3Q14 Dinkum RMBS Index of 1.08%. The pool was fully covered by lenders' mortgage insurance (LMI) provided by Genworth Financial Mortgage Insurance Pty Limited (Insurer Financial Strength Rating: A+/Stable) (99.5%) and QBE Lenders' Mortgage Insurance Ltd (Insurer Financial Strength Rating: AA-/Stable) (0.5%).

The transaction includes an extendable 12 month revolving period, which Fitch is comfortable with as the portfolio stratifications have not changed significantly since the initial issue, Macquarie Bank's product mix has not materially changed over this time, and the portfolio is performing as expected. Additionally, during the 12 month revolving period principal proceeds will be used to acquire eligible receivables. Various eligibility criteria and pool parameters are documented to ensure that during the revolving period the portfolio maintains a stable credit profile.

RATING SENSITIVITIES
The 'AAAsf' modelled loss severity after LMI was 28.22%. At this level the Class A notes could withstand a default rate of 28.7% and the Class B1 notes could withstand a default rate of 18.07%. This analysis excludes any credit to excess spread.

The rating of the Class B1 notes is dependent on the ratings of the LMI providers, although the rating is currently able to withstand a two notch-downgrade in the insurer's ratings.