Fitch Affirms PUMA Sub-Fund B-1 at 'AAAsf'/Stable

(The following statement was released by the rating agency)

SYDNEY, January 16 (Fitch) Fitch Ratings has affirmed PUMA Sub-Fund B-1's (PUMA 
B-1) Class A and AB residential mortgage-backed floating rate notes as follows: 

AUD 6,528.5m Class A (ISIN AU3FN0005427) notes affirmed at 'AAAsf'; Outlook 
Stable; and

AUD 435.6m Class AB (ISIN AU3FN0021721) notes affirmed at 'AAAsf'; Outlook 
Stable.

The transaction is backed by a pool of residential mortgages originated by a 
panel of retail mortgage brokers and wholesale mortgage managers under the PUMA 
securitisation programme of Macquarie Bank Limited (MBL, A/Stable/F1).

The transaction was upsized and restructured with the addition of the Class AB 
tranche on 27 December 2013.

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 have also remained in line with expectations. 

As of end-October 2013, 30+ days arrears stood at 1.4%, above Fitch's 3Q13 
Dinkum Prime Index of 1.19%. The pool was fully covered by lenders' mortgage 
insurance (LMI) provided by Genworth Financial Mortgage Insurance Pty Limited 
(90.9%), QBE Lenders Mortgage Insurance Ltd (Insurer Financial Strength Rating 
AA-/Stable) (8.9%), and Housing Loans Insurance Corporation (0.2%).

PUMA Sub-Fund B-1 has a 10-year revolving period of which there are four years 
remaining. Fitch is comfortable with the long revolving period because the 
portfolio stratifications have not changed significantly since the initial 
issue, Macquarie Bank's product mix has not materially changed over this time, 
and the portfolio is performing as expected.

RATING SENSITIVITIES

Unexpected decreases in the value of residential property, or increases in the 
frequency of foreclosures, and loss severity on defaulted mortgages could 
produce loss levels higher than Fitch's base case, potentially resulting in 
negative rating actions on the notes.

Contacts: 

Lead Surveillance Analyst     

Brenden Asplin 

Analyst

+61 2 8256 0358

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 was Macquarie Bank 
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; "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=814971

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. 
PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: 
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FREE WEB SITE AT WWW.FITCHRATINGS.COM. PUBLISHED RATINGS, CRITERIA, AND 
METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF 
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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.