Fitch Affirms Ratings of 7 Crusade Transactions

(The following statement was released by the rating agency)

SYDNEY, January 14 (Fitch) Fitch Ratings has affirmed 35 ratings from seven 
Crusade transactions. The transactions are securitisations of Australian 
conforming residential mortgages originated by St George Bank Ltd, now part of 
Westpac Banking Corporation (Westpac, 'AA-'/Stable/F1+). The rating actions are 
as follows: 

Crusade Global Trust No.1 of 2005:

USD60.4m Class A-1 (ISIN US22882TAA16) affirmed at 'AAAsf'; Outlook Stable;

EUR55.3m Class A-2 (ISIN XS0214391269) affirmed at 'AAAsf'; Outlook Stable;

Class A-2 Currency Swap Obligations (ISIN US22882TAA16), affirmed at 'AAAsf'; 
Outlook Stable;

AUD85.5m Class A-3 (ISIN AU300CRG8011) affirmed at 'AAAsf'; Outlook Stable;

AUD9.2m Class B (ISIN AU300CRG8029) affirmed at 'AA+sf'; Outlook Stable; and

AUD2.1m Class C (ISIN AU300CRG8037) affirmed at 'BBBsf'; Outlook Stable. 

Crusade Global Trust No 2 of 2005:

USD127.4m Class A-1 (ISIN US22882VAA61) affirmed at 'AAAsf'; Outlook Stable;

AUD114.6m Class A-2 (ISIN AU300CRG9019) affirmed at 'AAAsf'; Outlook Stable;

AUD10.3m Class B (ISIN AU300CRG9027) affirmed at 'AA+sf'; Outlook Stable; and

AUD2.9m Class C (ISIN AU300CRG9035) affirmed at 'BBBsf'; Outlook Stable 

Crusade Global Trust No.1 of 2006:

USD107.9m Class A-1 (ISIN US228816AA25) affirmed at 'AAAsf'; Outlook Stable;

EUR77.0m Class A-2 (ISIN XS0245228738) affirmed at 'AAAsf'; Outlook Stable;

AUD193m Class A-3 (ISIN AU0000CTJHA3) affirmed at 'AAAsf'; Outlook Stable;

AUD16.8m Class B (ISIN AU300CRGA025) affirmed at 'AA+sf'; Outlook Stable; and

AUD7.9m Class C (ISIN AU300CRGA033) affirmed at 'BBBsf'; Outlook Stable. 

Crusade Global Trust No. 2 of 2006:

USD233.7m Class A-1 (ISIN US22882WAA45) affirmed at 'AAAsf'; Outlook Stable;

EUR87.6m Class A-2 (ISIN XS0268688669) affirmed at 'AAAsf'; Outlook Stable;

AUD113.9m Class A-3 (ISIN AU0000CTUHB8) affirmed at 'AAAsf'; Outlook Stable;

AUD22.2m Class B (ISIN AU3FN0000261) affirmed at 'AA+sf'; Outlook Stable; and

AUD9.7m Class C (ISIN AU3FN0000279) affirmed at 'BBBsf'; Outlook Stable.

Crusade Euro Trust No. 1E of 2006:

EUR84.1m Class A-1 (ISIN XS0258982148) affirmed at 'AAAsf'; Outlook Stable;

AUD197.4m Class A-2 (ISIN AU0000CTKHB9) affirmed at 'AAAsf'; Outlook Stable;

AUD13.4m Class B (ISIN AU300CRE4020) affirmed at 'AA+sf'; Outlook Stable; and

AUD5.9m Class C (ISIN AU300CRE4038) affirmed at 'BBBsf'; Outlook Stable.

Crusade Global Trust No. 1 of 2007:

USD312.7m Class A-1 (ISIN US228819AA63) affirmed at 'AAAsf'; Outlook Stable;

Class A-1 Currency Swap Obligation (ISIN US228819AA63) affirmed at 'AAAsf'; 
Outlook Stable; 

EUR129.4m Class A-2 (ISIN XS0291457504) affirmed at 'AAAsf'; Outlook Stable;

Class A-2 Currency Swap Obligation (ISIN XS0291457504), affirmed at 'AAAsf'; 
Outlook Stable;

AUD145.7m Class A-3 (ISIN AU0000CTHHB5) affirmed at 'AAAsf'; Outlook Stable;

AUD29.9m Class B (ISIN AU3FN0002028) affirmed at 'AA+sf'; Outlook Stable; and

AUD13.1m Class C (ISIN AU3FN0002036) affirmed at 'BBBsf'; Outlook Stable. 

Crusade Euro Trust No. 1E of 2007:

EUR108.1m Class A-1 (ISIN XS0305933839) affirmed at 'AAAsf'; Outlook Stable;

AUD302.6m Class A-2 (ISIN AU0000CSNHB5) affirmed at 'AAAsf'; Outlook Stable; 

AUD17.0m Class B (ISIN AU3FN0003141) affirmed at 'AA+sf'; Outlook Stable; and

AUD8.0m Class C (ISIN AU3FN0003158) affirmed at 'BBBsf'; Outlook Stable. 

KEY RATING DRIVERS

The affirmations reflect Fitch's view that the available credit enhancement and 
excess spread is able to support the current ratings, the stable credit quality 
and performances of the pools, and Fitch's expectations of Australia's economic 
conditions. The underlying pools are fully covered by lenders' mortgage 
insurance (LMI) provided by QBE Lenders Mortgage Insurance Ltd. (Insurer 
Financial Strength Rating: AA-/Stable), Genworth Financial Mortgage Insurance 
Pty Ltd, and Westpac Lenders Mortgage Insurance Limited (WMLI, formerly St. 
George Insurance Australia Pty Limited, Insurer Financial Strength Rating: 
'AA-'/Stable). 

Loans insured by WLMI with an original loan to value ratio (LVR) over 80% have 
an aggregate cap on claims of 5% of the original loan balances. This cap is 
calculated on all loans originated by St. George Bank Ltd per financial year. As 
at 30 November 2013, the cap had not been breached for any year of origination. 
Excess spread for all Crusade transactions is expected to be sufficient to cover 
future losses. 

All Crusade transactions have arrears above Fitch's 30+ days Dinkum Index of 
1.19%, as at 30 November 2013. Fitch expects seasonal spending to have a 
temporary negative impact on arrears in 1Q13. All Crusade transactions' 30+ days 
arrears range from 1.5% to 2.3%.

The Crusade transactions are well seasoned at over eight years, and the 
Fitch-calculated weighted average indexed LVR ranged between 39.95% (for Crusade 
Global Trust No.1 of 2005) and 48.42% (Crusade Euro Trust No. 1E of 2007), 
compared to 49.09% and 56.15% before indexation. All seven pools are 
geographically diversified. 

The ratings of the currency swap obligations are based on Fitch's assessment 
that the currency swap payment obligations rank pro rata and equally with the 
referenced notes. Consequently, the credit profile of the currency swap payment 
obligations is consistent with the Long-Term ratings of the referenced note. The 
rating affirmations of and stable outlooks assigned to the currency swap 
obligations are consistent with the underlying notes trust's ability to meet its 
scheduled payments, where due, under the currency swap agreement. 

RATING SENSITIVITIES

The prospects for downgrades are considered remote given the level of 
subordination available to the Class A notes on all transactions. 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. 

The transactions' Class B notes are more sensitive to changes in mortgage 
performance. However, credit enhancement levels for the 'AA+sf' rated notes can 
support many multiples of arrears levels. 

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

Ben McCarthy

Managing Director

+612 8256 0300 

The source of information used to assess these ratings was the servicer, Westpac 
Banking Corporation (Westpac, 'AA-'/Stable/F1+). 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.

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

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=814632

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