OREANDA-NEWS. Fitch Ratings has affirmed Fastnet Securities 10, as follows:

Class A1 (XS1143015748): affirmed at AA+; Outlook Stable
Class A2 (XS1143016472): affirmed at AA-; Outlook Stable
Class A3 (XS1143016985): affirmed at A+; Outlook Stable

The Irish RMBS transaction was originated by Permanent TSB (PTSB).

KEY RATING DRIVERS
Good Asset Performance
The transaction is only one year seasoned and, as a result, has a limited performance track record. However, the assets are performing in line with Fitch's expectations, with loans in arrears by more than three months remaining under 1%, similar to the level in Fastnet 9. Defaults and losses remain muted so far.

Restructured Loans
Fitch received information regarding the loans that have been restructured since the transaction closed. In line with its criteria, Fitch has applied an adjustment to the default probability (PD) of such loans. We increased the PD by between 10% and 70% according to the renegotiation type and the time that has elapsed since the restructuring occurred. As of October 2015, 720 loans (8.3% of the total number of loans in the portfolio) have been restructured since closing, so the total proportion of the portfolio that has been subject to restructuring has reached about 30% of the pool.

Interest Only (IO) Loan Concentration
The transaction has a concentration of more than 20% of IO loans maturing within a three-year period during the lifetime of the transaction. As per its criteria, Fitch carried out a sensitivity analysis assuming a 50% default probability for these loans and found that the currently available credit enhancement is sufficient to withstand such stresses.

Good Liquidity Level
The transaction has several features providing a good level of liquidity within the structure. There is a non-amortising reserve fund (RF) that equals 2% of the initial portfolio balance and represents 2.8% of the current class A note balance (class A1, A2 and A3). The transaction also has a liquidity reserve fund amortising to 2.5% of the class A balance. Finally, the structure can use principal to pay interest on the notes.

RATING SENSITIVITIES
Material increases in the frequency of restructurings, defaults and loss severity on defaulted receivables could produce loss levels higher than Fitch's base case expectations, which in turn may result in negative rating action on the notes.

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 transaction closing, Fitch reviewed the results of a third party assessment conducted on the asset portfolio information, which indicated errors related to the information. These findings were considered in this analysis by applying an adjustment to the base underwriting to account for the volume of errors.

Prior to the transaction closing, Fitch conducted a review of a small targeted sample of Permanent TSB's origination files and found the information contained in the reviewed files to be adequately consistent with the originator's policies and practices and the other information provided to the agency about the asset portfolio.

Overall and together with the assumptions referred to above, 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.
- Loan-by-loan data provided by the European Data Warehouse as at 31 August 2015
- Transaction reporting provided by Permanent TSB as at 30 September 2015
- Loan restructuring information provided by Permanent TSB as at October 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 Fastnet Securities 10 Limited - Appendix, dated 1 December 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.