Fitch's Dinkum ABS Index Shows Resilient Performance in 4Q13

(The following statement was released by the rating agency)

SYDNEY, February 18 (Fitch) Auto ABS delinquencies showed resilience to 
seasonality in 4Q13, according to Fitch's latest quarterly Dinkum ABS Index.

The index showed the 30+ days delinquency rate rose by 7bp to 1.01% in 4Q13, 
lower than the average 17bp increase during the respective fourth-quarters of 
the past four years. The 60+ days arrears bucket remained largely stable over 
the quarter, falling by 1 bp to 0.35%, indicating that rising unemployment is 
yet to flow through to late-stage arrears.

Defaults fell over the quarter, and despite a seasonal decrease in average 
recovery rates to 41.2%, down from 49.4% in 3Q13, the annualised net loss rate 
also fell, to 0.47%, from 0.56% in 3Q13. Net losses are expected to return to 
the 0.5-0.6% range in future, reflecting the increasing cost of living and 
rising unemployment.

Auto ABS issuance of AUD5.8bn in 2013 was 11% below 2012's record AUD6.5bn of 
securitised assets. The outstanding collateral underlying the index fell by 
AUD0.5bn to AUD8.5bn, despite the addition of a new transaction in 4Q13.

The current and historic Dinkum ABS Index data is available in Excel form 
through the full report entitled 'Auto ABS Index - Australia: The Dinkum ABS 
Index - 4Q13', available at www.fitchratings.com, or by clicking the link above.

Contacts:

Brenden Asplin

Analyst

+612 8256 0340

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

James Zanesi

Director

+612 8256 0306

Natasha Vojvodic 

Senior Director, 

Head of Australian and New Zealand Structured Finance 

+612 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.

Applicable Criteria and Related Research: Auto ABS Index - Australia: The Dinkum 
Index - Q413

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=736502

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