Direct line: 1300 987 995
(The following statement was released by the rating agency)
SYDNEY, March 24 (Fitch) Fitch Ratings has affirmed six Medallion Trust Series
RMBS transactions, with 22 tranches affirmed and one tranche upgraded. These
transactions are backed by pools of 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 rating
actions are at the end of this commentary.
KEY RATING DRIVERS
The affirmations reflect Fitch's view that credit enhancement levels are able to
support the notes' current ratings and the agency's expectations of Australia's
economic conditions, with the Medallion Series Trust 2013-1 Class B notes
upgraded due to a build-up of credit enhancement for the note sufficient to
achieve a rating of 'AAsf'. The credit quality and performance of the loans in
the respective collateral pools remain in line with the agency's expectations.
Medallion Trust Series 2006-1G and Medallion Trust Series 2007-1G are currently
paying down on a pro-rata basis, with principal collections for these
transactions being allocated across all classes of notes with the exception of
the Class A-4 note in Medallion Trust Series 2007-1G. Medallion Trust Series
2011-1, 2012-1, 2013-1 and 2013-2 are each currently paying down on a sequential
basis. All transactions have lender's mortgage insurance (LMI) provided by
Genworth Financial Mortgage Insurance Pty Ltd or QBE Lenders' Mortgage Insurance
Limited (AA-/Stable) with cover ranging from 14.8% to 100% of the portfolios.
RATING SENSITIVITIES
In Fitch's rating sensitivity analysis, the likelihood of a downgrade of the
senior note classes is remote, based on each respective note's performance and
structure.
Initial key rating drivers and rating sensitivities are further described in the
new issue reports for Series 2012-1, 2013-1 and 2013-2 dated 20 August 2012, 10
March 2013 and 30 August 2013 respectively. A comparison of representations and
warranties for these transactions to typical representations and warranties for
Australian RMBS is available by accessing the respective representation and
warranties appendices to the new issue reports.
The list of rating actions follows:
Medallion Trust Series 2006-1G:
USD274.5m Class A-1 affirmed at 'AAAsf'; Outlook Stable;
AUD274.5m Class A-2 affirmed at 'AAAsf'; Outlook Stable;
EUR61.8m Class A-3 affirmed at 'AAAsf'; Outlook Stable; and
AUD20.3m Class B affirmed at 'BBBsf'; Outlook Stable.
Medallion Trust Series 2007-1G:
USD32.0m Class A-1 affirmed at 'AAAsf'; Outlook Stable;
AUD18.0m Class A-2 affirmed at 'AAAsf'; Outlook Stable;
EUR16.5m Class A-3 affirmed at 'AAAsf'; Outlook Stable;
AUD1,200.0m Class A-4 affirmed at 'AAAsf; Outlook Stable; and
AUD38.6m Class B affirmed at 'BBBsf'; Outlook Stable.
Medallion Trust Series 2011-1:
AUD865.9m Class A1 affirmed at 'AAAsf'; Outlook Stable
AUD525m Class A2 affirmed at 'AAAsf'; Outlook Stable
AUD108m Class AB affirmed at 'AAAsf'; Outlook Stable
AUD54m Class AC affirmed at 'AAAsf'; Outlook Stable
Medallion Trust Series 2012-1:
AUD681.5m Class A affirmed at 'AAAsf'; Outlook Stable
AUD60m Class B affirmed at 'AAsf'; Outlook Stable
Medallion Trust Series 2013-1:
AUD727.7m Class A1 affirmed at 'AAAsf'; Outlook Stable
AUD827.1m Class A2 affirmed at 'AAAsf'; Outlook Stable
AUD250m Class A3 affirmed at 'AAAsf'; Outlook Stable
AUD153m Class B upgraded to 'AAsf' from 'AA-sf'; Outlook Stable,
Medallion Trust Series 2013-2:
AUD1753.7m Class A1 notes affirmed at 'AAAsf'; Outlook Stable
AUD469.0m Class A2 notes affirmed at 'AAAsf'; Outlook Stable
AUD400m Class A3 notes affirmed at 'AAAsf'; Outlook Stable
AUD200m Class B notes affirmed at 'AA-sf'; Outlook Stable
Contacts:
Lead Surveillance Analyst
Anthea Clark
Associate Director
+61 2 8256 0379
Fitch Australia Pty Ltd. Level 15, 77 King St, Sydney, NSW 2000
Committee Chairperson
Natasha Vojvodic
Senior Director
+61 2 8256 0350
Media Relations: Iselle Gonzalez, Sydney, Tel: +61 2 8256 0326, Email:
iselle.gonzalez@fitchratings.com.
Additional information is available at www.fitchratings.com.
The source of information used to assess these rating was the servicer,
Commonwealth Bank of Australia. The issuer has informed Fitch that not all
relevant underlying information used in the analysis of the rated notes is
public.
Applicable criteria, "Global Structured Finance Rating Criteria", dated 24 May
2013 "Global Criteria for Lenders' Mortgage Insurance in RMBS" dated 1 August
2013; "APAC Residential Mortgage Criteria" dated 1 August 2013, "APAC
Residential Mortgage Criteria Addendum - Australia", dated 1 August 2013;
"Counterparty Criteria for Structured Finance and Covered Bonds", dated 13 May
2013 and "Counterparty Criteria for Structured Finance and Covered Bonds:
Derivative Addendum", dated 13 May 2013, are available at www.fitchratings.com.
Related research:
Medallion Series Trust 2012-1 New Issue dated 20 August 2012
Medallion Series Trust 2013-1 New Issue dated 10 March 2013
Medallion Series Trust 2013-2 New Issue dated 30 August 2013
"Representations, Warranties, and Enforcement Mechanisms in Global Structured
Finance Transactions" dated 17 April 2012
Applicable Criteria and Related Research:
Exposure Draft: Global Criteria for Lendersâ Mortgage Insurance in RMBS -
Effective May 16, 2011 to Aug. 10, 2011
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=620912
APAC Residential Mortgage Criteria - Amended
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=709855
APAC Residential Mortgage Criteria Addendum â Australia - Amended
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=710259
Counterparty Criteria for Structured Finance and Covered Bonds
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=707155
Counterparty Criteria for Structured Finance and Covered Bonds: Derivative
Addendum
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=707156
Medallion Trust Series 2012-1
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=686571
Medallion Trust Series 2013-1
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=703436
Medallion Trust Series 2013-2
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=717236
Representations, Warranties, and Enforcement Mechanisms in Global Structured
Finance Transactions -- Amended
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=676496
Global Structured Finance Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=708661
Additional Disclosure
Solicitation Status
http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=824711
ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS.
PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK:
HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING
DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S
FREE WEB SITE AT WWW.FITCHRATINGS.COM. PUBLISHED RATINGS, CRITERIA, AND
METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF
CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE,
AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE CODE OF
CONDUCT SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE
SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS
SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED
ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH
WEBSITE.
Fitch Australia Pty Ltd holds an Australian financial services licence (AFS
licence no. 337123) which authorises it to provide credit ratings to wholesale
clients only. Credit ratings information published by Fitch is not intended to
be used by persons who are retail clients within the meaning of the Corporations
Act 2001.
(Repeat for additional subscribers)
March 24 (Reuters) - (The following statement was released by the rating agency)
Fitch Ratings has affirmed six Medallion Trust Series RMBS transactions, with 22 tranches affirmed and one tranche upgraded. These transactions are backed by pools of Australian residential mortgages originated by Commonwealth Bank of Australia
KEY RATING DRIVERS
The affirmations reflect Fitch's view that credit enhancement levels are able to support the notes' current ratings and the agency's expectations of Australia's economic conditions, with the Medallion Series Trust 2013-1 Class B notes upgraded due to a build-up of credit enhancement for the note sufficient to achieve a rating of 'AAsf'. The credit quality and performance of the loans in the respective collateral pools remain in line with the agency's expectations.
Medallion Trust Series 2006-1G
RATING SENSITIVITIES
In Fitch's rating sensitivity analysis, the likelihood of a downgrade of the senior note classes is remote, based on each respective note's performance and structure.
Initial key rating drivers and rating sensitivities are further described in the new issue reports for Series 2012-1, 2013-1 and 2013-2 dated 20 August 2012, 10 March 2013 and 30 August 2013 respectively. A comparison of representations and warranties for these transactions to typical representations and warranties for Australian RMBS is available by accessing the respective representation and warranties appendices to the new issue reports.
The list of rating actions follows:
Medallion Trust Series 2006-1G:
USD274.5m Class A-1 affirmed at 'AAAsf'; Outlook Stable;
AUD274.5m Class A-2 affirmed at 'AAAsf'; Outlook Stable;
EUR61.8m Class A-3 affirmed at 'AAAsf'; Outlook Stable; and
AUD20.3m Class B affirmed at 'BBBsf'; Outlook Stable.
Medallion Trust Series 2007-1G:
USD32.0m Class A-1 affirmed at 'AAAsf'; Outlook Stable;
AUD18.0m Class A-2 affirmed at 'AAAsf'; Outlook Stable;
EUR16.5m Class A-3 affirmed at 'AAAsf'; Outlook Stable;
AUD1,200.0m Class A-4 affirmed at 'AAAsf; Outlook Stable; and
AUD38.6m Class B affirmed at 'BBBsf'; Outlook Stable.
Medallion Trust Series 2011-1:
AUD865.9m Class A1 affirmed at 'AAAsf'; Outlook Stable
AUD525m Class A2 affirmed at 'AAAsf'; Outlook Stable
AUD108m Class AB affirmed at 'AAAsf'; Outlook Stable
AUD54m Class AC affirmed at 'AAAsf'; Outlook Stable
Medallion Trust Series 2012-1:
AUD681.5m Class A affirmed at 'AAAsf'; Outlook Stable
AUD60m Class B affirmed at 'AAsf'; Outlook Stable
Medallion Trust Series 2013-1:
AUD727.7m Class A1 affirmed at 'AAAsf'; Outlook Stable
AUD827.1m Class A2 affirmed at 'AAAsf'; Outlook Stable
AUD250m Class A3 affirmed at 'AAAsf'; Outlook Stable
AUD153m Class B upgraded to 'AAsf' from 'AA-sf'; Outlook Stable,
Medallion Trust Series 2013-2:
AUD1753.7m Class A1 notes affirmed at 'AAAsf'; Outlook Stable
AUD469.0m Class A2 notes affirmed at 'AAAsf'; Outlook Stable
AUD400m Class A3 notes affirmed at 'AAAsf'; Outlook Stable
AUD200m Class B notes affirmed at 'AA-sf'; Outlook Stable
((Bangalore Ratings Team, Hotline: +91 80 6677 2513, Bhanu.priya@thomsonreuters.com, Group id: BangaloreRatings@thomsonreuters.com, Reuters Messaging: Bhanu.Priya.reuters.com@reuters.net))
Keywords: Fitch Affirms 22 Medallion RMBS Tranches, Upgrades