Fitch Affirms Four Tranches from Two Barton Transactions

(The following statement was released by the rating agency)

SYDNEY, January 15 (Fitch) Fitch Ratings has affirmed the ratings of Barton 
Series 2011-1 Trust (Barton 2011-1) and Barton Series 2013-1R Trust (Barton 
2013-1R). The transactions are securitisations of first-ranking Australian 
residential mortgages originated by Beyond Bank Australia. The rating actions 
are as follows:

Barton 2011-1:

AUD52.1m Class A1 (ISIN AU3FN0012829) affirmed at 'AAAsf'; Outlook Stable;

AUD90.9m Class A2 (ISIN AU3FN0012837) affirmed at 'AAAsf'; Outlook Stable; and

AUD7.8m Class AB (ISIN AU3FN0012845) affirmed at 'AAAsf'; Outlook Stable.

Barton 2013-1R:

AUD376.4m Class A1 (AU3FN0019600) affirmed at 'AAAsf'; Outlook Stable.

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 pool has remained in line with expectations.

As at end-November 2013, 30+ days arrears made up 0.83% and 0.11% of the pools 
backing Barton 2011-1 and Barton 2013-1R respectively, below Fitch's Dinkum 
Index measuring industry-wide performance (1.19%). 

The transactions had experienced no defaults and consequently no claims on 
lenders' mortgage insurance (LMI) since closing. All loans in the Barton 2011-1 
pool are covered by LMI from Genworth Financial Mortgage Insurance Pty Ltd and 
QBE Lenders' Mortgage Insurance Limited (Insurer Financial Strength Rating: 
AA-/Stable), while 20% of the value of Barton 2013-1R's collateral was covered 
by LMI.

The pools are relatively geographically concentrated around South Australia and 
ACT, with around 50% and 20% of each pool located in each region respectively. 
The geographical distributions and seasoning of each pool (Barton 2011-1 5 
years; Barton 2013-1R 2.5 years) resulted in a reduction of the Fitch-calculated 
weighted average loan to value ratios to 52.3% after indexation from 55.6% 
before indexation for Barton 2011-1, and to 59.6% from 60.3% for Barton 2013-1.

Barton 2013-1R has a 10-year revolving period of which 9.5 years remain. Fitch 
is comfortable that the credit profile of the transaction will be maintained 
during the substitution period as adequate loan eligibility criteria and pool 
parameters are in place.

RATING SENSITIVITIES

Unexpected increases in delinquencies, defaults and losses would be necessary 
before any negative rating action would be considered.

Sequential pay-down has increased credit enhancement for the senior notes of 
Barton 2011 1, which can withstand multiples of the latest reported arrears. The 
rated notes of both transactions are independent of downgrades of the LMI 
providers' ratings.

Fitch's key rating drivers and rating sensitivities are further discussed in the 
new issue report entitled 'Barton Series 2011-1 Trust', dated 13 April 2011, 
available on www.fitchratings.com.

Contacts: 

Lead Surveillance Analyst

Brenden Asplin

Analyst

+61 2 8256 0340

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

Committee Chairperson

Alison Ho

Senior Director

+852 2263 9937

The source of information used to assess these ratings is provided by Beyond 
Bank 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; "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; "Global Criteria for Lenders' Mortgage 
Insurance in RMBS" dated 1 August 2013; "APAC Residential Mortgage Criteria", 
dated 1 August 2013; and "APAC Residential Mortgage Criteria Addendum - 
Australia", dated 1 August 2013, are available at 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: 

Global Structured Finance Rating Criteria

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

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

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

Additional Disclosure 

Solicitation Status 

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=814931

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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.