OREANDA-NEWS. Fitch Ratings has affirmed the ratings of Kingfisher Trust 2008-1 Class A notes at 'AAAsf,' as shown below. The transaction is a securitisation of first-ranking Australian conforming residential mortgages originated by Australia and New Zealand Banking Group (ANZ, AA-/Stable/F1+). The rating action is as follows:

AUD67.7bn Class A notes (ISIN AU3FN0016325) affirmed at 'AAAsf'; Outlook Stable.

KEY RATING DRIVERS
The affirmation reflects Fitch's view that available credit enhancement is sufficient to support the notes' current ratings, our expectations of Australia's economic conditions, and the fact that the credit quality and performance of the loans in the collateral pool have remained in line with expectations. The transaction remains within its substitution period, with principal collections being used to purchase additional receivables.

The transaction has recorded low levels of defaults and arrears. At 31 August 2015, 30+ days arrears stood at 0.3%, below Fitch's Dinkum Index of 1.12%. There have been nine foreclosures since issuance, resulting in a loss of AUD379,867. Since closing, the transaction has experienced losses of AUD379,867, covered by lenders' mortgage insurance (LMI) and excess spread. ANZ Lenders Mortgage Insurance covers 26.1% of the pool; no credit is given for this in the analysis.

Kingfisher Trust 2008-1 Fund's revolving period ends in May 2025. Fitch is comfortable with the long revolving period because portfolio stratifications have not changed significantly since closing, ANZ's product mix has not materially changed over this time, and the portfolio is performing as expected.

RATING SENSITIVITIES
Fitch's 'AAAsf' breakeven stressed default rate is 11.3%. The transaction could withstand an additional 2.37% at Fitch's 'AAAsf' loss severity. The ratings are LMI independent and therefore not sensitive to downgrades to the LMI providers' 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 ANZ compared to ANZ'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 under Related Research below.