OREANDA-NEWS. Fitch Ratings has affirmed the ratings of Kingfisher Trust 2008-1's Class A notes at 'AAAsf'. The transaction is backed by Australian conforming residential mortgages originated by Australia and New Zealand Banking Group (ANZ; AA-/Stable/F1+). The rating action is as follows:

AUD62.6bn Class A notes (ISIN AU3FN0016325) affirmed at 'AAAsf'; Outlook Stable.

KEY RATING DRIVERS
The affirmation reflects the fact that the credit quality and performance of the loans in the collateral pool have remained in line with Fitch's expectations, including its expectations of Australia's economic conditions. The transaction remains within its substitution period, with principal collections being used to purchase additional receivables.

The transaction has performed within Fitch's expectations, with low levels of defaults and arrears. At 2 March 2015, 30+ days arrears tracked at 0.46%, below the latest Dinkum RMBS Index level of 1.15% at 4Q14. Since closing, the transaction has experienced losses of AUD379,867, covered by lenders' mortgage insurance and excess spread. ANZ Lenders Mortgage Insurance covers 27.4% of the pool; no credit is given for this in the analysis.

The transaction's revolving period ends in May 2025. Fitch is comfortable with the long revolving period because the transaction's portfolio stratifications and ANZ's product mix have not changed materially since closing in 2008, and the portfolio is performing as expected.

RATING SENSITIVITIES
The 'AAAsf' loss severity is 53.60%. At this level the transaction could withstand an increase in foreclosures to 13.0%.