OREANDA-NEWS. June 30, 2015. Fitch Ratings has assigned final ratings to FirstMac Mortgage Funding Trust No.4 Series 1A-2014's Class A-2B(A) mortgage-backed floating-rate notes. The ratings are as follows:

AUD297.5m Class A-2B(A) notes: 'F1+sf'.

The Class A-2B(A) notes are floating rate, one-year hard bullet securities with a legal maturity in June 2016, the proceeds of which have been today used to refinance the Class A-2A notes in their entirety. The Class A-2A notes were originally issued in June 2014 as part of an AUD750m RMBS issue by Firstmac Fiduciary Services Pty Ltd. The refinance of the Class A-2A notes was contemplated in the original issuance and is detailed in Fitch's new issue report, dated 26 June 2014.

If refinancing is not available for the Class A-2B(A) notes, National Australia Bank Limited (NAB, AA-/F1+/Stable), as the redemption facility provider, will fund the Class A-2B(A) note redemption. The Class A-2B(A) notes will mature in June 2016 and be repaid from any monies in the redemption fund and the issuance of Class A-2R notes either to the market or subscribed for by NAB, creating a rating link to NAB.

The transaction continues to perform in line with Fitch's expectations at origination, and has paid down since issuance from AUD750m to approximately AUD580m. All remaining notes were affirmed on 2 March 2015. Balances at 26 May 2015 are as follows:

AUD183.5m Class A-1 notes: 'AAAsf'; Outlook Stable;
USD270m Class A-2A notes: 'F1+sf';
AUD0m Class A-2R notes: 'AAAsf'; Outlook Stable;
AUD23.9m Class A-3 notes: 'AAAsf'; Outlook Stable;
AUD45.75m Class AB notes: Not Rated;
AUD22.5m Class B-1 notes: Not Rated;
AUD3.75m Class B-2 notes: Not Rated; and
AUD3m Class B-3 notes: Not Rated.

The Class A-2A notes will be repaid with proceeds from the Class A-2B(A) issuance.

The notes are issued by Firstmac Fiduciary Services Pty Ltd in its capacity as trustee of Firstmac Mortgage Funding Trust No. 4 Series 1A-2014.

KEY RATING DRIVERS
The final rating of the Class A-2B(A) notes is linked to NAB's Short-Term Issuer Default Rating (IDR) of 'F1+'.

RATING SENSITIVITIES
Negative rating actions may result from changes in the NAB's Short-Term IDR.

DUE DILIGENCE USAGE
No third party due diligence was provided or reviewed in relation to this rating action.

DATA ADEQUACY
Fitch conducted a file review of 10 sample loan files focusing on the underwriting procedures conducted by Firstmac compared to Firstmac's credit policy at the time of underwriting. Fitch has checked the consistency and plausibility of the information and no material discrepancies were noted that would impact Fitch's rating analysis.

Key Rating Drivers and Rating Sensitivities are further discussed in the corresponding new issue report entitled "FirstMac Mortgage Funding Trust No.4 Series 1A-2014", dated 26 June 2014. Included as an appendix to the report are a description of the representations, warranties, and enforcement mechanisms.