OREANDA-NEWS. Fitch Ratings has affirmed the ratings of notes issued by The New Zealand Guardian Trust Company Limited in its capacity as trustee of the Q Card Trust. The transaction is a securitisation of New Zealand credit card receivables. The transaction is a revolving, asset backed note programme that features a multi class structure that will purchase eligible receivables from the seller on a revolving basis.

The rating actions are listed below:

NZD 10.0m, VFN affirmed at 'AAAsf'; Outlook Stable;
NZD 89.5m, Series A 2014-1 affirmed at 'AAAsf'; Outlook Stable;
NZD 58.0m, Series A 2014-2 affirmed at 'AAAsf'; Outlook Stable;
NZD 58.0m, Series A 2014-3 affirmed at 'AAAsf'; Outlook Stable;
NZD 32.5m, Series B 2014-1 affirmed at 'AAsf'; Outlook Stable;
NZD 22.8m, Series C 2014-1 affirmed at 'Asf'; Outlook Stable;
NZD 16.3m, Series D 2014-1 affirmed at 'BBBsf'; Outlook Stable; and
NZD 18.0m, Series E 2014-1 affirmed at 'BBsf'; Outlook Stable.

KEY RATING DRIVERS
The affirmation reflects Fitch's view that the available credit enhancement is sufficient to support the notes' current rating, and the agency's expectations of New Zealand's economic conditions. Credit quality and the performance of the underlying receivables have remained within the agency's expectations.

The transaction was modelled with a base case gross yield rate of 17.3%, a base case monthly payment rate (MPR) of 6.8% and a base case charge-off rate of 5.0%. The transaction has performed better than expected with an average gross yield rate of 19.7%, an average MPR of 7.4% and an average charge-off rate of 3.0% since closing.

Arrears greater than 120 days are low at 3.84% as of 30 June 2015. Arrears greater than 120 days have been stable in the 2%-4% range, well below the excess spread trapping trigger of 8.00%.

Fitch has not revised its base case assumptions.

RATING SENSITIVITIES
At the base case of the gross yield rate, MPR, and charge-off rate, the transaction can withstand multiples of the current charge-off rates ranging from 4.94x in a 'AAAsf' scenario to 2.53x in a 'BBsf' scenario.

At the average gross yield rate, MPR, and charge-off rate since closing, the transaction can withstand higher multiples of the current charge-offs rates ranging from 10.22x in a 'AAAsf' scenario to 5.53x in a 'BBsf' scenario.

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 Fisher & Paykel Finance Limited compared to its 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.

Initial Key Rating Drivers and Rating Sensitivities are described further in the New Issue report dated 12 August 2014.

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 under Related Research below.