OREANDA-NEWS. Fitch Ratings has today affirmed the National RMBS Trust's 2012-1 Class A notes. The issuance consists of notes backed by Australian residential mortgages originated by Advantedge Financial Services Pty Limited. The ratings are as follows:

AUD 14,921.8m Class A notes: 'AAAsf'; Outlook Stable;

KEY RATING DRIVERS 
The affirmation reflects 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.

Lenders Mortgage Insurance (LMI) covered 18.9% of the pool; 16.7% was covered by QBE Lenders Mortgage Insurance Ltd (Insurer Financial Strength Rating AA-/Stable) and 2.2% Genworth Financial Mortgage Insurance Pty Limited (Insurer Financial Strength Rating A+/Stable). All losses have been covered by LMI or excess spread, totaling AUD 104,962.

The transaction's five-year substitution period ends in 2017 with the option to extend by further periods of five years. Fitch is comfortable with the long revolving period as the portfolio stratifications have not changed significantly since initial issue, Advantedge's product mix has not materially changed over this time, and the portfolio is performing as expected.

RATING SENSITIVITIES
The Class A notes are independent of LMI and therefore not sensitive to downgrades to the LMI providers' ratings. At the modelled 'AAAsf' loss severity of 44.5% the transaction can withstand an increase in foreclosures to 18.7%.

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