OREANDA-NEWS. Fitch Ratings has affirmed 23 and upgraded 6 tranches of 10 Medallion Trust Series RMBS transactions. The transactions are securitisations of first-ranking Australian residential mortgages originated by Commonwealth Bank of Australia (CBA, AA-/Stable/F1+), and Homepath Limited (a wholly owned subsidiary of CBA that originates home loans online). The list of rating actions can be found at the end of this commentary. The note balances are as of 30 November 2015.

KEY RATING DRIVERS
The affirmations reflect Fitch's view that available credit enhancement is sufficient to support the notes' current ratings, and the agency's expectations of Australia's economic conditions. The credit quality and performance of the loans in the collateral pools have remained in line with Fitch's expectations. The upgrades of the Class B notes of Medallion Trust Series 2012-1, Medallion Trust Series 2013-1, Medallion Trust Series 2013-2, Medallion Trust Series 2014-1, Medallion Trust Series 2014-1P, and Medallion Trust Series 2014-2 reflect the build-up of credit enhancement sufficient to achieve higher ratings.

At 30 November 2015, only Medallion 2007-1G, Medallion 2011-1 and Medallion 2013-2 had 30+ arrears above Fitch's 30+days Dinkum Index (3Q15: 0.9%) at 1.6%, 1.2% and 1.0%. Losses across the pools have been low with the highest at 0.04% of the original pool balances for Medallion 2007-1G and 0.02% for both Medallion 2011-1 and Medallion 2013-1. Six of the 10 transactions have had no losses to date.

Fitch's calculated weighted average loan/value (LVR) ratios ranged from 42.5% (Medallion Trust Series 2007-1G) to 58.7% (Medallion Trust Series 2015-2). All pools have benefitted from indexation, with Medallion Trust Series 2007-1G experiencing the largest improvement in LVR, to 33.2%.

RATING SENSITIVITIES
Sequential pay-down has increased credit enhancement for the senior notes of each transaction, with the 'AAAsf' rated notes able to withstand many multiples of the latest reported arrears.

The ratings of the Class B notes of Medallion Trust Series 2015-2, Medallion 2015-1, Medallion 2014-2, Medallion 2013-2 and Medallion 2007-1G are dependent on the lender's mortgage insurance (LMI) providers' ratings.

Medallion Trust Series 2007-1G Class B notes' ratings are unlikely to change unless there is a significant reduction in LMI claims paid and Fitch considers that levels of excess spread are no longer adequate.

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 CBA 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.

The full list of rating actions is shown below (note balances as of 30 November 2015).

Medallion Trust Series 2007-1G (note balances as of 31 October 2015):
AUD842.6m Class A-4 (ISIN AU3FN0001830) notes affirmed at 'AAAsf; Outlook Stable; and
AUD25.3m Class B (ISIN AU3FN0001855) notes affirmed at 'BBBsf'; Outlook Stable.

Medallion Trust Series 2011-1:
AUD364.7m Class A1 (ISIN AU3FN0012944) notes affirmed at 'AAAsf'; Outlook Stable;
AUD525.0m Class A2 (ISIN AU3CB0173953) notes affirmed at 'AAAsf'; Outlook Stable;
AUD63.1m Class AB (ISIN AU3FN0012951) notes affirmed at 'AAAsf'; Outlook Stable; and
AUD31.6m Class AC (ISIN AU3FN0012969) notes affirmed at 'AAAsf'; Outlook Stable.

Medallion Trust Series 2012-1:
AUD401.7m Class A (ISIN AU3FN0016176) notes affirmed at 'AAAsf'; Outlook Stable; and
AUD57.1m Class B (ISIN AU3FN0016184) notes upgraded to 'AAAsf' from 'AA+sf'; Outlook Stable.

Medallion Trust Series 2013-1:
AUD315.4m Class A1 (ISIN AU3FN0018024) notes affirmed at 'AAAsf'; Outlook Stable;
AUD478.2m Class A2 (ISIN AU3FN0018032) notes affirmed at 'AAAsf'; Outlook Stable;
AUD250.0m Class A3 (ISIN AU3CB0205789) notes affirmed at 'AAAsf'; Outlook Stable; and
AUD153.0m Class B (ISIN AU3FN0018040) notes upgraded to 'AAAsf' from 'AAsf'; Outlook Stable.

Medallion Trust Series 2013-2:
AUD890.9m Class A1 (ISIN AU3FN0019972) notes affirmed at 'AAAsf'; Outlook Stable;
AUD281.1m Class A2 (ISIN AU3FN0019980) notes affirmed at 'AAAsf'; Outlook Stable;
AUD400.0m Class A3 (ISIN AU3CB0212702) notes affirmed at 'AAAsf'; Outlook Stable; and
AUD200.0m Class B (ISIN AU3FN0019998) notes upgraded to 'AAAsf' from 'AAsf'; Outlook Stable.

Medallion Trust Series 2014-1:
AUD760.4m Class A1 (ISIN AU3FN0022109) notes affirmed at 'AAAsf'; Outlook Stable;
AUD380.5m Class A2 (ISIN AU3FN0022117) notes affirmed at 'AAAsf'; Outlook Stable;
AUD300.0m Class A3 (ISIN AU3CB0218733) notes affirmed at 'AAAsf'; Outlook Stable;
AUD0.0m Class A3-R notes affirmed at 'AAAsf'; Outlook Stable; and
AUD150.7m Class B (ISIN AU3FN0022208) notes upgraded to 'AA+sf', from 'AA-sf'; Outlook Stable.

Medallion Trust Series 2014-1P:
AUD306.5m Class A1 (ISIN AU3FN0023801) notes affirmed at 'AAAsf'; Outlook Stable, and
AUD33.0m Class B (ISIN AU3FN0023099) notes upgraded to 'AAsf' from 'Asf'; Outlook Stable.

Medallion Trust Series 2014-2:
AUD2,570.5m Class A1 (ISIN AU3FN0024501) notes affirmed at 'AAAsf'; Outlook Stable, and
AUD240.0m Class B (ISIN AU3FN0024519) notes upgraded to 'AAsf' from 'A+sf'; Outlook Stable.

Medallion Trust Series 2015-1:
AUD1,517.1m Class A1 (ISIN AU3FN0026464) notes affirmed at 'AAAsf'; Outlook Stable, and
AUD120.0m Class B (ISIN AU3F0026472) notes affirmed at 'A+sf'; Outlook Stable.

Medallion Trust Series 2015-2:
AUD1,735.5m Class A1 (ISIN AU3FN0028726) notes affirmed at 'AAAsf'; Outlook Stable, and
AUD120m Class B (ISIN AU3FN0028734) notes affirmed at 'AA-sf'; Outlook Stable.

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.