OREANDA-NEWS. Fitch Ratings has assigned final ratings to National RMBS 2012-2 Trust's Class A2-R mortgage-backed floating-rated notes. The issuance consists of notes backed by prime residential mortgages originated by Advantedge Financial Services Pty Ltd. The ratings are as follows:

AUD 127.0m Class A2-R notes: 'AAAsf'; Outlook Stable.

The Class A2-R notes are issued to refinance the soft bullet Class A2 notes on the refinance date of 21 December 2015. The Class A2 notes (equivalent to AUD126.7m) were repaid from the issuance of the Class A2-R notes.

The Class A2 notes were originally issued in December 2012 as part of an AUD1bn RMBS issue by National Australia Bank Limited (NAB, AA-/Stable), which was a securitisation of loans originated by Advantedge Financial Services Pty Ltd. The refinance of the Class A2 notes was contemplated in the original issuance and is detailed in Fitch's new issue report, dated 12 December 2012.

The notes are issued by Perpetual Trustee Victoria Limited in its capacity as trustee of National RMBS 2012-2.

KEY RATING DRIVERS
The 'AAAsf' rating assigned to the Class A2-R notes is supported by the credit enhancement provided by the subordinate Class B and C notes, the lender's mortgage insurance (LMI) policies, the liquidity facility which is equivalent to 1.9% of the receivables that are not 90 days or more in arrears, and the mortgage underwriting and servicing capabilities of Advantedge Financial Services Pty Ltd and National Australia Bank Limited.

RATING SENSITIVITIES
Unexpected decreases in residential property value, increases in the frequency of foreclosures, and loss severity on defaulted mortgages could produce loss levels higher than Fitch's base case, which could in turn result in a negative rating action on the notes.

Fitch's initial rating drivers and rating sensitivities analysis are discussed in the new issue report entitled, "National RMBS 2012-2 Trust", available at www.fitchratings.com.

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 Ltd compared to Advantedge Financial Services Pty Ltd 's 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.