Fitch Affirms Ratings of Two GBS Receivables Transactions

(The following statement was released by the rating agency)

SYDNEY, March 26 (Fitch) Fitch Ratings has affirmed the ratings of two GBS RMBS 
transactions, as detailed below. The transactions are securitisations of 
conforming residential full-documentation mortgages originated by Greater 
Building Society (GBS).

GBS Receivables Trust No.4 (GBS No.4):

AUD78.1m Class A1 (ISIN AU3FN0009015) affirmed at 'AAAsf'; Outlook Stable; and

AUD7.0m Class A2 (ISIN AU3FN0009023) affirmed at 'AAAsf'; Outlook Stable.

GBS Receivables Repo Trust (GBS Repo Trust):

AUD375.0m Class A (ISIN AU3FN0020459) 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 pools have remained in line with Fitch's expectations.

As at end-February 2014, 30+ days arrears made up 0.3% and 0.1% of the pools 
backing GBS No.4 and GBS Repo Trust respectively, below Fitch's 4Q13 Dinkum 
Index measuring industry-wide performance (1.21%). No defaults or losses had 
been experienced in either transaction since issuance.

All loans in the underlying pools are covered by lenders' mortgage insurance 
(LMI), with policies provided by Genworth Financial Mortgage Insurance Pty Ltd 
and QBE Lenders' Mortgage Insurance Limited (Insurer Financial Strength Rating: 
AA-/Stable).

GBS No.4's weighted average (WA) seasoning was 38 months at Feb-14, and as a 
result the Fitch calculated WA loan-to-value ratio reduced to 46.0% from 50.8% 
after indexation was applied. The collateral underlying the transactions is 
geographically concentrated in New South Wales and specifically the Hunter 
Valley, where GBS is headquartered.

GBS Repo Trust features a 10-year substitution period, ending in 2023. Fitch is 
comfortable with the long revolving period due to the presence of various 
eligibility criteria and pool parameters, and the portfolio's performance to 
date.

RATING SENSITIVITIES

Unexpected increases in delinquencies, defaults and losses would be necessary 
before any negative rating action were considered. The notes' credit enhancement 
levels can support multiples of the arrears levels reported in the latest 
investor reports.

GBS No. 4's ratings are LMI independent and therefore not sensitive to 
downgrades to the LMI providers' ratings, whereas the rating of GBS Repo Trust's 
Class A is sensitive to the LMI providers' ratings.

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

Natasha Vojvodic

Senior Director

+61 2 8256 0350

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

Additional information is available at www.fitchratings.com. 

The source of information used to assess these ratings was Greater Building 
Society. 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 - 
Amended", dated 1 August 2013; and "APAC Residential Mortgage Criteria Addendum 
- Australia - Amended", dated 1 August 2013, are 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=825191

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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.