OREANDA-NEWS. Fitch Ratings has affirmed the ratings of Lion Series 2009-1 Trust's Class A notes at 'AAAsf'. The transaction is a securitisation of Australian conforming residential mortgages originated by HSBC Bank Australia Limited (HSBC). The rating action is as follows (balance as of end-November 2015):

AUD 2.48 bn Class A 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 rating, and can withstand a deterioration of the current economic conditions in Australia in-line with the agency's expectations. Credit quality and performance of the underlying loans have remained stable and within the agency's expectations. The transaction is currently paying down on a pro-rata basis.

At 30 November 2015, the reported 30+ days arrears stood at 0.34%, below Fitch's Dinkum RMBS Index of 0.91% as of 3Q15. There is no lenders' mortgage insurance, and there have been no losses to date.

RATING SENSITIVITIES
Fitch's 'AAAsf' breakeven stressed default rate is 7.12%. The Class A notes can withstand an additional 19.23% 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 HSBC Bank Australia 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.