Fitch Affirms Lion Series 2009-1 Trust at 'AAAsf'

(The following statement was released by the rating agency)

SYDNEY, January 30 (Fitch) Fitch Ratings has affirmed the rating of Lion Series 
2009-1 Trust's Class A notes as shown below. The transaction is a securitisation 
of Australian conforming residential mortgages originated by HSBC Bank Australia 
Limited (HSBC). 

AUD1,458m Class A affirmed at 'AAAsf'; Outlook Stable.

KEY RATING DRIVERS

The affirmation reflects Fitch's view that the available credit enhancement and 
excess spread is able to support the current rating, the stable credit quality 
and performances of the pool, and Fitch's expectations of Australia's economic 
conditions.

The transaction is currently paying down on a pro-rata basis with principal 
distributions being allocated to the Class A and Class B notes.

As of 31 December 2013, the pool consisted of 6,663 loans totalling 
AUD1,695,312,347 with 30+ days arrears reported to be 0.50%, below Fitch's 
Dinkum Index of 1.19%. There is no lenders’ mortgage insurance, and there have 
been no losses to date. HSBC's product mix has not materially changed since 
closing and the portfolio is performing as expected.

RATING SENSITIVITIES

The prospect of a downgrade is considered remote given the level of 
subordination available to the Class A notes. A significant and unexpected 
increase in delinquencies, defaults and losses would be necessary before any 
negative rating action would be considered. Credit enhancement levels for the 
'AAAsf' rated notes can support many multiples of arrears. 

Contacts: 

Lead Surveillance Analyst

James Zanesi

Director

+61 2 8256 0306

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

Committee Chairperson

Natasha Vojvodic

Senior Director

+612 8256 0350

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

The source of information used to assess these ratings was the servicer, HSBC 
Bank Australia Limited. 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. 

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

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=818252

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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.