OREANDA-NEWS. Fitch Ratings has assigned final ratings to Firstmac Mortgage Funding Trust Series 1E-2013's (Firstmac 1E-2013) class A2-R mortgage-backed floating-rate notes. The ratings are as follows:

AUD150m Class A2-R notes: 'AAAsf'; Outlook Stable

The class A2-R notes were issued to refinance the soft-bullet class A-2 notes on 10 June 2016. The sterling-denominated class A-2 notes of GBP92m (AUD150m) were repaid from the issuance of the Australian dollar-denominated class A2-R notes, as the guaranteed investment contract account balance was zero at the payment date in May 2016.

The class A-2 notes were originally issued in June 2013 as part of an AUD500m RMBS issue by Firstmac. The notes' refinance was contemplated in the original issuance as detailed in Fitch's new issue report dated 17 June 2013. The transaction continues to perform in-line with Fitch's expectations at origination and has paid down from AUD500m to approximately AUD258m since issuance.

Ratings for the remaining rated notes are unchanged and were affirmed on 25 February 2016 as follows (balances as at May 2016):

AUD70.5m Class A-1 notes (ISIN AU3FN0019261): 'AAAsf'; Outlook Stable

AUD20.8m Class AB notes (ISIN AU3FN0019279): 'AAAsf'; Outlook Stable

The class A2-R notes were issued by Firstmac Fiduciary Services Pty Ltd in its capacity as trustee of Firstmac 1E-2013.

KEY RATING DRIVERS

The 'AAAsf' rating assigned to the class A2-R notes is supported by the credit enhancement provided by the subordinate class AB and B notes; the lenders' mortgage insurance policies; the liquidity facility, which is equivalent to 0.9% of the outstanding note balance; and Firstmac's mortgage underwriting and servicing capabilities.

RATING SENSITIVITIES

Unexpected decreases in residential property value, increases in the frequency of foreclosures and loss severity on defaulted mortgages could produce loss levels higher than Fitch's base-case, which could in turn result in negative rating action on the notes.

DUE DILIGENCE USAGE

No third party due diligence was provided or reviewed in relation to this rating action.

DATA ADEQUACY

Fitch conducted a review of 10 sample loan files focusing on the underwriting procedures conducted by Firstmac compared to its credit policy at the time of underwriting. Fitch has checked the consistency and plausibility of the information and no material discrepancies were noted that would impact Fitch's rating analysis.