OREANDA-NEWS. August 10, 2015. Fitch Ratings has affirmed the ratings of PUMA Series 2014-3P (PUMA 2014-3P). The transaction is backed by a pool of first ranking Australian residential mortgages originated by Macquarie Bank Limited's (A/Stable/F1) PUMA securitisation programme. The rating actions are as follows:

AUD1,500m Class A (ISINAU3FN0024196) notes affirmed at 'AAAsf'; Outlook Stable; and
AUD49m Class B1 (ISIN AU3FN0024204) notes affirmed at 'AAAsf'; Outlook Stable.

KEY RATING DRIVERS
The affirmations reflect 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.

At end-June 2015, 30+ days arrears stood at 0.42%, below Fitch's 1Q15 Dinkum RMBS Index of 1.17%. The pool was fully covered by lenders' mortgage insurance (LMI) provided by Genworth Financial Mortgage Insurance Pty Limited (Insurer Financial Strength Rating: A+/Stable) and QBE Lenders' Mortgage Insurance Ltd (Insurer Financial Strength Rating: AA-/Stable).

RATING SENSITIVITIES
Fitch's 'AAAsf' breakeven stressed default rate is 11.3%. The Class A notes can withstand an additional 16.1% in defaults at Fitch's 'AAAsf' loss severity. The Class B1 notes can withstand an additional 5.8% in defaults at Fitch's 'AAAsf' loss severity.

The rating of the Class B1 notes is dependent on the ratings of the LMI providers, although the rating is currently able to withstand a two notch-downgrade in the insurer's ratings.

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 Macquarie Bank Limited compared to Macquarie Bank Limited'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.

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.