OREANDA-NEWS. January 26, 2016. Fitch Ratings has affirmed the ratings of Crusade Trust No. 2P of 2008 as shown below (the note balance is as of the latest quarterly reporting September 2015). The transaction is a securitisation backed by a pool of Australian residential mortgages originated by Westpac Banking Corporation (Westpac, AA-/Stable/F1+), which became successor in law to St.George Bank Ltd in March 2010. The rating action is as follows:

AUD28,700m Class A (AU3FN0019931) 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 the agency's expectations of Australia's economic conditions. Credit quality and performance of the underlying loans have remained within the agency's expectations.

At 30 September 2015, 30+ days arrears were 1.3%, above Fitch's Dinkum RMBS Prime Index. Lender's mortgage insurance (LMI) is provided by QBE Lenders' Mortgage Insurance Limited (Insurer Financial Strength Rating AA-/Stable), Westpac Lenders Mortgage Insurance Limited (WLMI, formerly St.George Insurance Australia Pty Limited, Insurer Financial Strength Rating AA-/Stable), and Genworth Financial Mortgage Insurance Pty Ltd (Insurer Financial Strength Rating A+/Stable). As of 30 September 2015, 31.4% of the pool had LMI, however, any further advances granted after the original settlement of a loan may not necessarily be covered by LMI. This is taken into consideration in the analysis through a modification of the quality adjustment.

RATING SENSITIVITIES
The Class A notes are LMI dependent and the transaction is sensitive to an increase in foreclosures due to the lack of buffer.

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 Westpac Banking Corporation 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.

This transaction currently has an 11 year revolving period ending in January 2019. Fitch is comfortable with the long revolving period because the portfolio stratifications have not changed significantly since issuance, Westpac's product mix has not materially changed over this same period, and the portfolio is performing as expected.

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.