OREANDA-NEWS. Fitch Ratings has affirmed Gemgarto 2012-1 Plc as follows:

Gemgarto 2012-1 Plc
Class A1 (ISIN XS0769019026) affirmed at 'AAAsf'; Outlook Stable

Gemgarto 2012-1 is a non-conforming UK transaction comprising loans originated by Kensington Mortgage Company Limited.

KEY RATING DRIVERS
Solid Asset Performance
Over the past 12 months, arrears cases have further reduced. As of end-October 2015, loans in arrears by three months or more stood at 0.8% of the outstanding portfolio balance, which is well below Fitch's UK non-conforming three-months plus arrears index (9.2%). Cumulative repossessions have remained stable at 0.18% of the original portfolio balance.

Build-up of Credit Enhancement
Annualised prepayment rates have fluctuated around 30% in the past 12 months. The accelerated pay-down of the portfolio has created a strong build-up of the credit enhancement of the class A1 notes.

RATING SENSITIVITIES
Given the high prepayment rates in Gemgarto 2012-1, Fitch highlights the risk of adverse selection within the portfolio should a significant number of borrowers face refinancing difficulties.

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.

Prior to the transaction closing, Fitch reviewed the results of a third party assessment conducted on the asset portfolio information, which indicated no adverse findings material to the rating analysis.

Prior to the transaction closing, Fitch conducted a review of a small targeted sample of origination files and found the information contained in the reviewed files to be adequately consistent with the originator's policies and practices and the other information provided to the agency about the asset portfolio.

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 Wells Fargo Bank International as at 14 December 2015
-Transaction reporting provided by Wells Fargo Bank International as at 30 November 2015

REPRESENTATIONS AND WARRANTIES
A comparison of the transaction's Representations, Warranties & Enforcement Mechanisms to those typical for the asset class is available by accessing the appendix that accompanies the initial new issue report (see Gemgarto 2012-1 plc - Appendix, dated 19 April 2015 at www.fitchratings.com). In addition refer to the special report "Representations, Warranties, and Enforcement Mechanisms in Global Structured Finance Transactions" dated 12 June 2015 available on the Fitch website.