OREANDA-NEWS. Fitch Ratings has affirmed the ratings for Kingfisher NZ Trust 2008-1 Class A and B2 notes. The transaction is a securitisation of New Zealand conforming residential mortgages originated by ANZ Bank New Zealand Limited (ANZNZ, AA-/Stable). The rating action is as follows:

Class A notes affirmed at 'F1+sf'; and
NZD 6,731.3m Class B2 notes (ISIN NZKNZD1022G6) affirmed at 'AAAsf'; Outlook Stable.

KEY RATING DRIVERS
The affirmations reflect Fitch's view that the available credit enhancement is sufficient to support the notes' current ratings, and can withstand deterioration from the current economic conditions in New Zealand 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.

At end-December 2015, 30+ days arrears were low at 0.52% of the underlying mortgage balance, and there have been no losses to date.

RATING SENSITIVITIES
At Fitch's 'AAAsf' breakeven default rate of 21.53%, the Class A and B2 notes can withstand an additional 2.38% 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 ANZNZ 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.

Kingfisher NZ Trust 2008-1 remains within its substitution period, ending in October 2018. Fitch is comfortable with the long revolving period because the portfolio stratifications have not changed significantly since initial issue. ANZNZ's product mix has not materially changed over this time, 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.