OREANDA-NEWS. Fitch Ratings has affirmed Stichting Holland Homes III, as follows:

Class A (ISIN XS0233450138) affirmed at 'AAAsf'; Outlook Stable
Class B (ISIN XS0233451615) affirmed at 'AAsf'; Outlook Stable
Class C (ISIN XS0233452936) affirmed at 'Asf'; Outlook Stable
Class D (ISIN XS0233453660) affirmed at 'BBsf'; Outlook Stable

The transaction is fully backed by mortgage loans originated by DBV Levensverzekeringsmaatschappij B.V. (DBV), which is now part of SNS Bank N.V. (BBB/Stable/F3).

KEY RATING DRIVERS
Healthy Asset Performance
The relatively low original loan to value (OLTV) in comparison with the rest of the Dutch market (weighted average combined loan to value (CLTV) of 61.7%) has resulted in limited arrears throughout the transaction's life. As of the September 2015 payment date, the collateral in arrears by more than three months stood at 0.03% of the current pool balance, which is significantly lower than the Dutch prime three-month plus index of 0.62%.

The transaction only reports foreclosures that incurred a loss for the structure. This number remains very limited despite nine years' seasoning. Given the current level of late-stage arrears, Fitch expects foreclosures to remain at very low levels.

Insurance Set-Off
The mortgages backed by capital insurance policies are exposed to the risk that, upon insolvency of the policy providers, borrowers may seek to set-off against their mortgages the claim over the insurance provider resulting from a loss of premium or damages. Further to this, borrowers could seek to exercise defences following the insolvency of their insurance provider and request cancellation of parts of the loans corresponding to the lost capital. Fitch incorporated in its analysis the risk the borrowers might exercise such defences following the failure of insurance providers. The agency estimated the set-off exposure and accounted for the exposure in the EMEA RMBS Surveillance Model.

RATING SENSITIVITIES
The transaction has a high proportion of interest-only loans. If the borrowers fail to repay the entire principal at maturity, this could lead to insufficient principal receipts and shortfalls in principal payments, eroding the liquidity within the transaction.

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.

Fitch did not undertake a review of the information provided about the underlying asset pool ahead of the transaction's initial closing. The subsequent performance of the transaction over the years is consistent with the agency's expectations given the operating environment and Fitch is therefore satisfied that the asset pool information relied upon for its initial rating analysis was adequately reliable.

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.
- Loan-by-loan data provided by Trust International Management as at 21 September 2015
- Transaction reporting provided by European Data Warehouse as at 31 August 2015