OREANDA-NEWS. December 22, 2015. Fitch Ratings has affirmed the rating of ORIX APL Trust 2010-1 as shown below. The transaction is a securitisation of non-recourse mortgage loans collateralised by multi-family rental apartments and originated by ORIX Corporation.

JPY4.04bn* class A trust beneficiary interests (TBIs) affirmed at 'AAAsf'; Outlook Stable
*as of 17 December 2015

KEY RATING DRIVERS
The affirmation reflects Fitch's view that available credit enhancement (CE) is sufficient to support the current rating. The master-lease structures in place have continued to support stable loan performance and there have been no defaults to date. In addition, aggregate rental income from the underlying collateral properties has been generally in line with Fitch's assumptions and the agency does not expect the master-lease rents to decline significantly in the near future. Fitch believes that deterioration in the underlying collateral's performance can be offset by growth in CE given the sequential repayment of the TBIs.

RATING SENSITIVITIES
An unexpected increase in the delinquency or default rate as well as significant downward revision of Fitch's net cash flow (NCF) assumption from the underlying properties may lead to higher loss assumptions, which may, in turn, affect the rating of the TBIs. The CE for the class A TBIs may be insufficient to support the current rating if the agency's NCF assumptions were revised down by 25%.

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 underlying 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 underlying pool information or conducted a review of loan origination files as part of its ongoing monitoring.