OREANDA-NEWS. Fitch Ratings has affirmed the ratings of two GBS RMBS transactions, as detailed below. The transactions are securitisations of conforming residential full-documentation mortgages originated by Greater Building Society (GBS).

GBS Receivables Trust No.4 (GBS No.4):
AUD58.4m Class A1 notes (ISIN AU3FN0009015) affirmed at 'AAAsf'; Outlook Stable; and
AUD7.0m Class A2 notes (ISIN AU3FN0009023) affirmed at 'AAAsf'; Outlook Stable.

GBS Receivables Repo Trust (GBS Repo Trust):
AUD375.0m Class A notes (ISIN AU3FN0020459) 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 pools have remained in line with Fitch's expectations.

As at end-January 2015, 30+ days arrears made up 0.85% and 0.66% of the pools backing GBS No.4 and GBS Repo Trust respectively, below Fitch's Prime RMBS Dinkum Index of 1.08%. No defaults or losses have been experienced in either transaction since issuance.

All loans in the underlying pools are covered by lenders' mortgage insurance (LMI), with policies provided by Genworth Financial Mortgage Insurance Pty Ltd Insurer (Financial Strength Rating: A+/Stable) and QBE Lenders' Mortgage Insurance Limited (Insurer Financial Strength Rating: AA-/Stable).

The Fitch calculated weighted average (WA) loan-to-value ratio (LVR) for GBS No.4 is 48.7%, which is reduced to 42.7% post indexation. GBS Repo Trust's Fitch calculated WA LVR is higher at 77.9%, reducing to 73.1% after indexation is applied. The collateral underlying both transactions is geographically concentrated in New South Wales and specifically the Hunter Valley, where GBS is headquartered.

GBS Repo Trust features a 10-year substitution period, ending in December 2023. Fitch is comfortable with the long revolving period due to the presence of various eligibility criteria and pool parameters, and the portfolio's performance to date.

RATING SENSITIVITIES
The current 'AAAsf' loss severities are 18.9% and 28.0% for GBS No.4 and GBS Repo Trust respectively. At this level, GBS No.4's Class A1 and A2 notes could withstand an increase in foreclosures to 88.9% and 36.0%, respectively. GBS Repo Trust's Class A could withstand an increase in foreclosures to 42.8%.

GBS No. 4's ratings are LMI independent and therefore not sensitive to downgrades to the LMI providers' ratings. The rating of GBS Repo Trust's Class A notes is sensitive and able to withstand a 3 notch downgrade to the LMI providers' ratings.

A comparison of the transaction's representations, warranties and enforcement mechanisms (RW&Es) to those of typical RW&Es for this asset class is also available by accessing the reports and/or links given under Related Research below.

Individual representations, warranties, and enforcement mechanisms reports are available for all structured finance transactions initially rated on or after 26 September 2011 at www.fitchratings.com.