OREANDA-NEWS. Fitch Ratings confirms ratings on all existing rated notes for Q Card Trust following a tap issuance of NZD50m. In addition Fitch has assigned a rating of 'Bsf' with Stable Outlook to the class F 2014-1 notes, which were previously not rated.

The transaction currently has a collateral pool of NZD335m of consumer receivables, comprising about 176,000 active customers with an average balance outstanding of around NZD1,900. The receivables were originated by Consumer Finance Limited, a subsidiary of Fisher & Paykel Finance Limited (FPF).

Credit enhancement for the notes remains unchanged following the tap issuance.

The increase in various classes of notes is effective today. The aggregate totals and ratings are as follows:

Class A 2014-2: NZD31.0m, resulting in an aggregate total of NZD89.0m; 'AAAsf'; Outlook Stable
Class B 2014-1: NZD5.0m, resulting in an aggregate total of NZD37.5m; 'AAsf'; Outlook Stable
Class C 2014-1: NZD3.5m, resulting in an aggregate total of NZD26.25m; 'Asf'; Outlook Stable
Class D 2014-1: NZD2.5m, resulting in an aggregate total of NZD18.75m; 'BBBsf'; Outlook Stable
Class E 2014-1: NZD2.75m, resulting in an aggregate total of NZD20.75m; 'BBsf'; Outlook Stable
Class F 2014-1: NZD1.0m, resulting in an aggregate total of NZD7.25m; assigned 'Bsf'; Outlook Stable
Class S 2014-1: NZD4.25m, resulting in an aggregate total of NZD36.25m; not rated

No additional class A 2014-1, A 2014-3 or VFN notes have been issued and their outstanding balances remain as follow:

VFN: NZD10.0m
Class A 2014-1: NZD89.5m
Class A 2014-3: NZD58m

KEY RATING DRIVERS
Q Card Trust's performance is stable with key rating drivers such as yield, monthly payment rates, charge-offs and arrears all within Fitch's steady state assumptions.

RATING SENSITIVITIES
Fitch has modelled three different scenarios when evaluating the sensitivity of the ratings on the notes: 1) increased charge-offs; 2) reduced yield, and 3) reduced monthly payment rate compared with the expected performance of Q Card Trust.
The ratings are sensitive to an increase in defaults and a reduction in monthly payment rates, with less sensitivity to yield reduction.

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 FPF 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.

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.