OREANDA-NEWS. Fitch Ratings affirms the ratings for GBS Receivables Repo Trust's Class A notes at 'AAAsf', Outlook Stable. The transaction is a securitisation of Australian conforming residential mortgages originated by Greater Building Society Limited (GBS). The rating action is as follows:

AUD375m Class A notes (ISIN AU3FN0020459) 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 ratings, and the agency's expectations of Australia's economic conditions. The credit quality and performance of the loans in the collateral pools have also remained in line with expectations.

As of 29 February 2016, 30+ days arrears were 0.56% compared to Fitch's 3Q15 Dinkum RMBS Prime Index of 0.91%. Lender's mortgage insurance (LMI) covered 100% of the pool; 58.5% Genworth Financial Mortgage Insurance Pty Limited (Insurer Financial Strength Rating A+/Stable) and 41.5% QBE Lenders Mortgage Insurance Ltd (Insurer Financial Strength Rating AA-/Stable).

The transaction remains within its 10-year revolving period, ending in December 2023, and no amortisation of the notes has occurred to date. Fitch is comfortable that the credit profile of the transaction will be maintained during the revolving period as adequate loan eligibility criteria and pool parameters are in place.

RATING SENSITIVITIES
The Class A notes are not independent of downgrades to the LMI provider's ratings but can withstand a three notch downgrade to the LMI providers.

At Fitch's 'AAAsf' breakeven default rate of 22.4%, the Class A notes can withstand an additional 20.2% 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 GBS 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.