OREANDA-NEWS. Fitch Ratings has affirmed the ratings of Illawarra Series IS Trust's Class A notes at 'AAAsf' as shown below. The transaction is a securitisation of Australian conforming residential mortgages originated by IMB Limited (IMB).

AUD441m Class A notes affirmed at 'AAAsf'; Outlook Stable.

KEY RATING DRIVERS
The affirmation reflects Fitch's view that available credit enhancement is sufficient to support the notes' current rating, the agency's expectations of Australia's economic conditions, and the credit quality and performance of the loans in the collateral pool have remained in line with expectations. The transaction remains within its substitution period with principal collections used to purchase additional receivables.

The transaction has performed within Fitch's expectations, with low levels of arrears and no defaults to date. At 28 February 2015, 30+ days arrears were at 0.25%, below the latest Dinkum RMBS Index level of 1.15% at 4Q14.

The pool benefits from lenders' mortgage insurance (LMI), with policies provided by Genworth Financial Mortgages Insurance Pty Limited (49%%, Insurer Financial Strength Rating: A+/Stable) and QBE Lenders' Mortgage Insurance Limited (10.6%, Insurer Financial Strength Rating: AA-/Stable).

Illawarra Series IS Trust features a 10-year substitution period, ending in April 2024. 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
At the modelled 'AAAsf' loss severity of 33.3%, the transaction can withstand an increase in foreclosures to 35.5%.

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 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.