OREANDA-NEWS. Fitch Ratings has affirmed the ratings for Barton Series 2013-1R Trust Class A notes. The transaction is a securitisation of Australian conforming residential mortgages originated by Beyond Bank Australia. The rating action is as follows:

AUD 376.4m Class A (AU3FN0019600) notes affirmed at 'AAAsf'; Outlook Stable.

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

As of November 2015, 30+ days arrears were 0.22% compared to Fitch's 3Q15 Dinkum RMBS Prime Index of 0.91%. The reported lenders' mortgage insurance (LMI) covered 19.9% of the pool; 10.5% was covered by Genworth Financial Mortgage Insurance Pty Limited (Insurer Financial Strength Rating A+/Stable) and 9.4% covered by QBE Lenders Mortgage Insurance Ltd (Insurer Financial Strength Rating AA-/Stable).

The transaction remains within its 10-year substitution period which ends in July 2023, and no amortisation of the notes has occurred to date. Fitch is comfortable with the long revolving period as the portfolio stratifications have not changed significantly since initial issue, Beyond Bank Australia's product mix has not materially changed over this time, and the portfolio is performing as expected.

RATING SENSITIVITIES
The Class A notes are currently independent of downgrades to the LMI provider's ratings. Due to the revolving nature of the transaction, Class A notes may become dependent on the LMI provider's ratings should the transaction's portfolio materially change. At Fitch's 'AAAsf' breakeven default rate of 10%, the Class A notes can withstand an additional 7.4% 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 Beyond Bank Australia 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.