OREANDA-NEWS. Fitch Ratings has affirmed the National RMBS Trust's 2012-1 Class A notes. The transaction is a securitisation of first-ranking Australian residential mortgages originated by Advantedge Financial Services Pty Limited. The ratings are as follows:

AUD 17,651.4m Class A notes: 'AAAsf'; Outlook Stable.

KEY RATING DRIVERS
The affirmations reflect Fitch's view that available credit enhancement is sufficient to support the notes' current ratings, and the agency's expectations of Australia's economic conditions. The credit quality and performance of the loans in the collateral pools have remained in line with expectations.

At October 2015, Lenders Mortgage Insurance (LMI) covered 17.75% of the pool; 15.93% was covered by QBE Lenders Mortgage Insurance Ltd (Insurer Financial Strength Rating AA-/Stable) and 1.82% by Genworth Financial Mortgage Insurance Pty Limited (Insurer Financial Strength Rating A+/Stable). All losses have been covered by LMI or excess spread, totalling AUD 148,054. The 30+ day arrears were at 0.36% at October 2015, lower than Fitch's Dinkum Index of 1.12%. The reported weighted average loan/value ratio was 67.6%.

The transaction's five-year substitution period ends in 2017 with the option to extend by further periods of five years. Fitch is comfortable with the long revolving period as the portfolio stratifications have not changed significantly since initial issue, Advantedge's product mix has not materially changed over this time, and the portfolio is performing as expected.

RATING SENSITIVITIES
The Class A notes are independent of LMI and therefore not sensitive to downgrades to the LMI providers' ratings. Fitch's 'AAAsf' breakeven stressed default rate is 13.04%. The Class A notes can withstand an additional 9.73% in defaults at Fitch's 'AAAsf' loss severity.

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 Advantedge Financial Services Pty Limited 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.