Fitch: Stable Ratings for APAC SF in 2Q15; Counterparty Downgrades Have Minor Impact
Rating actions in Australia continued to be supported by a strong economy, with most ratings reviewed during the quarter, being affirmed. In addition, three RMBS tranches were placed on Rating Watch Negative, following the downgrade of The Royal Bank of Scotland plc (BBB+/Stable/F2).
During the quarter, a total of 17 Japanese tranches were affirmed. This total included five tranches from three outstanding RMBS transactions and 10 RMBS ratings that were ultimately withdrawn. The only downgrade in the quarter was to a structured credit note, following the downgrade of the underlying collateral issuer's Long-Term Issuer Default Rating.
Elsewhere in APAC, the Class B note from Driver China One Trust was upgraded following a substantial build-up of credit enhancement and asset performance, well within Fitch's expectations. Five other international ratings backed by assets in India, China and Thailand, were affirmed, as were six National ratings backed by assets in Thailand.
Most long-term ratings in APAC have Stable Outlooks. The exceptions are the three tranches placed on Rating Watch Negative and three Positive Outlooks in Australia.
Individual rating action commentaries relating to specific rating actions can be found on Fitch's website at www.fitchratings.com.
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