OREANDA-NEWS. Fitch Ratings has taken various rating actions on Turbo Finance 4 plc and Turbo Finance 5 plc as follows:

Turbo Finance 4 PLC
GBP328.9m Class A notes due Jan 2021 affirmed 'AAAsf'; Outlook Stable
GBP33.6m Class B notes due Jan 2021 upgraded to 'AA-sf' from 'A+sf'; Outlook Stable
GBP11.3m Class C notes due Jan 2021 upgraded to 'BBB+sf' from 'BBBsf'; Outlook Stable

Turbo Finance 5 PLC
GBP371.6m Class A notes due Aug 2021 affirmed 'AAAsf'; Outlook Stable
GBP37.7m Class B notes due Aug 2021 affirmed 'A+sf'; Outlook Stable
GBP10.7m Class C notes due Aug 2021 affirmed 'BBBsf'; Outlook Stable

Both transactions are securitisations of UK auto loan receivables originated by FirstRand Bank (FRB, BBB/Negative/F3). The revolving period of Turbo Finance 4 plc (Turbo 4) ended on 14 November 2014 and the transaction has been sequentially amortising since, whereas Turbo Finance 5 plc (Turbo 5) has a one- year revolving period ending on 18 September 2015.

KEY RATING DRIVERS
Turbo 4
The affirmation and upgrade of the rated notes reflect the transaction's solid performance to date. As of the end of 12-month revolving period, the notes have been amortising sequentially leading to the class A notes being paid down to about 60% of its original balance. Due to the on-going de-leveraging, credit enhancement (CE) has risen for class A, B and C notes to 21.8%, 7.4% and 2.6% respectively, from 13.3%, 4.3% and 1.3%.

Cumulative defaults stood at 1% and losses remain low at 0.44% as of end-August 2015. In addition, losses due to voluntary termination (VT) cases have remained at low levels as a result of stable used vehicle values in the UK. Due to the high yield on the underlying receivables, the transaction has benefitted from significant gross excess spread throughout its life (10.5% per annum on average in the last 12 months).

Lifetime default base case has been revised to 2.75% from 3.25% due to the better-than expected performance of the transaction.

Turbo 5
The transaction features a one-year revolving period, which ends in September 2015. On-going performance continues to be in line with Fitch's expectations, with cumulative defaults and losses remaining low at 0.5% and 0.2%, respectively and the number of VT cases remaining at a low level. Base case default and loss expectations remain unchanged from closing at 3.25% and 1.62% respectively.

CE remains stable and the reserve fund remains undrawn at its required amount. The transaction benefits from high gross excess spread of 9.8% on average per annum.

Fitch expects the performance of UK consumer ABS transactions to remain stable, reflecting a steady economic outlook. The agency forecasts GDP growth of 2.5% for 2015, and 2.3% in 2016, based on the latest Global Economic Outlook Report. UK unemployment rate is expected to be 5.4% and 5.3% in 2015 and 2016, respectively.

RATING SENSITIVITIES
Turbo 4
Expected impact upon the note rating of increased losses (class A / B/ C)
Current Ratings: 'AAAsf' / 'AA-sf' / 'BBB+sf'
Increase base case loss by 10%: 'AAAsf' / 'A+sf' / 'BBB+sf'
Increase base case loss by 25%: 'AAAsf' / 'A+sf' / 'BBB+sf'

Turbo 5
Expected impact upon the note rating of increased losses (class A / B / C)
Current Ratings: 'AAAsf' / 'A+sf' / 'BBBsf'
Increase base case loss by 10%: 'AAAsf' / 'Asf' / 'BBB+sf'
Increase base case loss by 25%: 'AA+sf' / 'A-sf' / 'BBBsf''

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

DATA ADEQUACY
Fitch has checked the consistency and plausibility of the information it has received about the performance of the asset pool and the transaction. There were no findings that were material to this analysis. Fitch has not reviewed the results of any third party assessment of the asset portfolio information or conducted a review of origination files as part of its ongoing monitoring.

Prior to the closing, Fitch reviewed the results of a third party assessment conducted on the asset portfolio information for both transactions. The assessments indicated no adverse findings material to the rating analysis.

Overall Fitch's assessment of the information relied upon for the agency's rating analysis according to its applicable rating methodologies indicates that it is adequately reliable.

SOURCES OF INFORMATION
The information below was used in the analysis.
- Monthly investor reports for both transactions provided by FRB, up to 18 August 2015 (August reporting date)
-Updated loan by loan data files for Turbo 5 with cut-off date 20 August 2015 and Turbo 4 with cut-off date 31 August 2015

REPRESENTATIONS AND WARRANTIES
A comparison of the transaction's Representations, Warranties & Enforcement Mechanisms to those typical for the asset class is available by accessing the appendix that accompanies the initial new issue report (see Turbo Finance 4 plc - Appendix, dated 14 November 2013 and Turbo Finance 5 plc and Turbo Finance 5 plc - Appendix, dated 23 September 2014 at www.fitchratings.com). In addition refer to the special report "Representations, Warranties, and Enforcement Mechanisms in Global Structured Finance Transactions" dated 12 June 2015 available on the Fitch website.