Fitch Affirms Four Bluestone Servicer Ratings at '2-'

(The following statement was released by the rating agency)

SYDNEY, February 17 (Fitch) Fitch Ratings has affirmed four servicer ratings for 
the Bluestone Group.

Bluestone Servicing Pty Ltd:

AUS Primary Servicer Rating for non-conforming RMBS affirmed at '2-'.

Bluestone Servicing NZ Ltd:

NZ Primary Servicer Rating for non-conforming RMBS affirmed at '2-'.

Bluestone Special Servicing Pty Ltd:

AUS Special Servicer Rating for non-conforming RMBS affirmed at '2-'; and 

NZ Special Servicer Rating for non-conforming RMBS affirmed at '2-'.

Bluestone Servicing Pty Ltd, Bluestone Servicing NZ Ltd and Bluestone Special 
Servicing Pty Ltd are 100% owned subsidiaries of Bluestone Group Pty Limited. 

The ratings reflect Bluestone Servicing and Bluestone Special Servicing's 
experienced management and servicing team, a strong technology platform, 
proactive servicing and arrears management procedures. 

2013 was a year of consolidation for Bluestone, following on from its previous 
expansion to develop a more diversified business base. Bluestone's operations 
now encompass mortgage origination and servicing, together with a credit 
portfolio and asset management business across Australia, New Zealand, the 
United Kingdom and Ireland. Bluestone continues to provide servicing, either as 
primary or back-up servicer, in Australia and New Zealand on the back of their 
BOSS technology platform. The recent partnering with a major Australian bank to 
host, process and service a potentially large portfolio of Australian 
residential mortgages is successfully ramping up and provides a potential 
template for future expansion in this area. Bluestone have recommenced 
non-conforming mortgage origination in Australia, albeit slowly, on their 
existing technology and servicing platform. Newly originated assets will help 
temper the continued fall in Bluestone's existing Australian non-conforming 
asset portfolio. A lessening in bad debts, strong cost controls, and continued 
diversification of the overall business has allowed Bluestone's profitability to 
grow, and strengthened their financial profile.

Bluestone, a privately-owned company, was founded in 2000 by its current 
chairman, Alistair Jeffery. The business commenced non-conforming residential 
mortgage lending in Australia in 2000, then expanded to New Zealand in 2002, 
launched reverse mortgage lending in 2004, and commercial mortgage lending in 
2006. Bluestone Servicing was established in 2006 and commenced operations with 
servicing of the Australian non-conforming portfolio in April 2007, including 
the transition of Bluestone's special servicing team, and has subsequently taken 
on end-to-end administration, such as primary servicing, special servicing and 
trust management, of additional external portfolios. Bluestone recently 
announced that Lloyds Development Capital (LDC), a private equity subsidiary of 
Lloyds Bank has, subject to regulatory approval, taken a significant 
shareholding in Bluestone.

Contacts:

Primary Analyst 

David Carroll

Director

+61 2 8256 0333

Fitch Australia Pty Ltd., Level 15, 77 King Street, Sydney NSW 2000

Secondary Analyst 

Anthea Clark

Associate Director

+61 2 8256 0379

Committee Chairperson

Natasha Vojvodic

Senior Director

+61 2 8256 0350

The source of information used to assess these ratings was the Bluestone Group. 
The Group has informed Fitch that not all relevant underlying information used 
in the analysis is public.

Applicable criteria, 'Rating Criteria for Structured Finance Servicers, dated 30 
January 2014, is available on www.fitchratings.com.

Media Relations: Iselle Gonzalez, Sydney, Tel: +61 2 8256 0326, Email: 
iselle.gonzalez@fitchratings.com.

Additional information is available at www.fitchratings.com.

Applicable Criteria and Related Research: 

Rating Criteria for Structured Finance Servicers

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=731750

Additional Disclosure 

Solicitation Status 

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=820695

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