Fitch Affirms Crusade Trust No.2P of 2008 at 'AAAsf'

(The following statement was released by the rating agency)

SYDNEY, February 13 (Fitch) Fitch Ratings has affirmed Crusade Trust No.2P of 
2008's residential mortgage-backed, pass-through floating rate notes at 'AAAsf'. 
The transaction is a securitisation backed by pools 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 
actions are as follows:

AUD21,735m Class A (AU3FN0019931) notes affirmed at 'AAAsf'; Outlook Stable.

KEY RATINGS DRIVERS

Crusade Trust No.2P of 2008 remains within its substitution period with 
principal collections being used, at the trust manager's discretion, to purchase 
additional receivables or pay down the Class A notes.

At 31 December 2013, 30+ days arrears stood at 0.76%, below Fitch's Dinkum Index 
of 1.19%. 33% of the loans within the pool have lender's mortgage insurance 
(LMI) provided by either QBE Lenders' Mortgage Insurance Limited (AA-/Stable), 
Westpac Lenders Mortgage Insurance Limited (WLMI, formerly St.George Insurance 
Australia Pty Limited, AA-/Stable), or Genworth Financial Mortgage Insurance Pty 
Ltd.

Loans insured by WLMI with an original loan to value ratio over 80% have an 
aggregate cap on claims of 5% of the original loan balances. This cap is 
calculated on all St.George Bank branded loans originated by Westpac Banking 
Corporation per financial year. As at 31 December 2013, the cap had not been 
breached for any year of origination. Excess spread for this transaction is 
expected to be sufficient to cover any future losses.

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.

RATING SENSITIVITIES

A significant and unexpected increase in delinquencies, defaults and losses 
would be necessary before any negative rating action could be considered. Credit 
enhancement levels for the Class A notes can support multiples of the arrears 
levels reported in the latest investor reports.

Contacts:

Lead surveillance analyst

James Zanesi

Director

+61 2 8256 0306

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.

The source of information used to assess this rating was Westpac Banking 
Corporation. The issuer has informed Fitch that not all relevant underlying 
information used in the analysis of the rated notes is public.

Additional information is available at www.fitchratings.com. 

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 - Amended" dated 1 August 2013; "APAC Residential Mortgage 
Criteria Addendum - Australia - Amended", dated 1 August 2013; "Counterparty 
Criteria for Structured Finance and Covered

Bonds", dated 13 May 2013; "Counterparty Criteria for Structured Finance and 
Covered Bonds:

Derivative Addendum", dated 13 May 2013 are available at www.fitchratings.com.

Applicable Criteria and Related Research: 

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=708661

Global Criteria for Lenders’ Mortgage Insurance in RMBS

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=709255

APAC Residential Mortgage Criteria - Amended

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=709855

APAC Residential Mortgage Criteria Addendum – 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

Additional Disclosure 

Solicitation Status 

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=820471

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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)

Feb 13 (Reuters) - (The following statement was released by the rating agency)

Fitch Ratings has affirmed Crusade Trust No.2P of 2008's residential mortgage-backed, pass-through floating rate notes at 'AAAsf'. The transaction is a securitisation backed by pools 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 actions are as follows:

AUD21,735m Class A (AU3FN0019931) notes affirmed at 'AAAsf'; Outlook Stable.

KEY RATINGS DRIVERS

Crusade Trust No.2P of 2008 remains within its substitution period with principal collections being used, at the trust manager's discretion, to purchase additional receivables or pay down the Class A notes.

At 31 December 2013, 30+ days arrears stood at 0.76%, below Fitch's Dinkum Index of 1.19%. 33% of the loans within the pool have lender's mortgage insurance (LMI) provided by either QBE Lenders' Mortgage Insurance Limited (AA-/Stable), Westpac Lenders Mortgage Insurance Limited (WLMI, formerly St.George Insurance Australia Pty Limited, AA-/Stable), or Genworth Financial Mortgage Insurance Pty Ltd.

Loans insured by WLMI with an original loan to value ratio over 80% have an aggregate cap on claims of 5% of the original loan balances. This cap is calculated on all St.George Bank branded loans originated by Westpac Banking Corporation per financial year. As at 31 December 2013, the cap had not been breached for any year of origination. Excess spread for this transaction is expected to be sufficient to cover any future losses.

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.

RATING SENSITIVITIES

A significant and unexpected increase in delinquencies, defaults and losses would be necessary before any negative rating action could be considered. Credit enhancement levels for the Class A notes can support multiples of the arrears levels reported in the latest investor reports.

((Bangalore Ratings Team, Hotline: +91 80 6677 2513 Debanjali.Ghosh@thomsonreuters.com, Group id: BangaloreRatings@thomsonreuters.com, Reuters Messaging: Debanjali.Ghosh.reuters.com@reuters.net))

Keywords: Fitch Affirms Crusade Trust No.2P of 2008 at 'AAAs