OREANDA-NEWS. Fitch Ratings has affirmed the ratings of six conforming RMBS transactions issued by Perpetual Trustee Company Limited in its capacity as trustee of the RESIMAC Triomphe Trusts. The transactions are backed by pools of Australian conforming residential mortgages originated by RESIMAC Limited.

The transactions are: 
RESIMAC Triomphe Trust - RESIMAC Premier Series 2010-1 (RESIMAC 2010-1); 
RESIMAC Triomphe Trust - RESIMAC Premier Series 2010-2 (RESIMAC 2010-2); 
RESIMAC Triomphe Trust - RESIMAC Premier Series 2011-1 (RESIMAC 2011-1); 
RESIMAC Triomphe Trust - RESIMAC Premier Series 2012-1 (RESIMAC 2012-1); 
RESIMAC Triomphe Trust - RESIMAC Premier Series 2013-1 (RESIMAC 2013-1) and 
RESIMAC Triomphe Trust - RESIMAC Premier Series 2014-1 (RESIMAC 2014-1).

The full list of rating actions can be found at the end of this commentary.

KEY RATING DRIVERS 
The rating actions reflect Fitch's view that available credit enhancement supports the notes at their current ratings, the agency's expectations of Australia's economic conditions, and that the credit quality and performance of the underlying loans have remained within the agency's expectations. Arrears and losses have been consistently low, while excess spread has remained stable. The ratings also reflect RESIMAC Limited's mortgage underwriting and servicing capabilities.

At 31 December 2014, 30+ days arrears levels for four of the six RESIMAC transactions tracked below Fitch's Dinkum Index of 1.08%. RESIMAC 2010-1 RMBS Trust showed the highest level of arrears at 1.97%, primarily due to the higher level of low documentation loans, while RESIMAC 2012-1 recorded the lowest level at 0.11%.

All transactions are 100% covered by lenders' mortgage insurance (LMI) provided by QBE Lenders' Mortgage Insurance Limited (Insurer Financial Strength Rating: AA-/Stable), Genworth Financial Mortgage Insurance Pty Ltd (Insurer Financial Strength Rating: A+/Stable), and Housing Loan Insurance Corporation. The transactions have experienced low levels of losses, with all losses covered by LMI or excess spread.

RATING SENSITIVITIES
Sequential pay-down has increased credit enhancement for the senior notes of each transaction, with the 'AAAsf' rated notes able to withstand many multiples of the latest reported arrears. The ratings of all the transactions' Class A notes are independent of downgrades to the LMI providers' ratings.

The 'AAAsf' modelled loss severities after LMI ranged between 23.79% and 29.11%, with the senior notes of each transaction able to withstand default rates of between 34.65% and 65.56%, with LMI, at the current modelled 'AAAsf' loss severities levels. This analysis excludes credit to excess spread, which has been strong and stable in each of the transactions. As a result, Fitch considers that the likelihood of any of the notes currently rated 'AAAsf' being downgraded is remote.

The rating of the RESIMAC 2013-1's Class A2-B notes is linked to National Australia Bank Limited's (NAB, AA-/F1+/Stable) Short-Term Issuer Default Rating (IDR) of 'F1+', therefore any change in NAB's rating will lead to a similar rating action on the notes.

The rating of the RESIMAC 2010-1's Class B1 notes is unlikely to be revised upwards as the notes are sensitive to LMI downgrades and concentration as the pool amortises. At the current rating and modelled loss severity of 6.34%, it can withstand defaults of up to 23.67%.

Fitch's initial key rating drivers and rating sensitivities are further discussed in the transactions' corresponding New Issue reports listed under "Related Research". Included as an appendix to the reports for RESIMAC 2012-1, RESIMAC 2013-1 and RESIMAC 2014-1 are a description of the representations, warranties, and enforcement mechanisms.

A comparison of the transactions' representations, warranties and enforcement mechanisms (RW&Es) to those of typical RW&Es for this asset class is also available by accessing the reports and/or links given under Related Research below.

RESIMAC 2010-1:
AUD56.4m Class A affirmed at 'AAAsf'; Outlook Stable;
AUD7.9m Class AB affirmed at 'AAAsf'; Outlook Stable; and
AUD1.5m Class B1 affirmed at 'Asf'; Outlook Stable.

RESIMAC 2010-2:
AUD145.3m Class A2 affirmed at 'AAAsf'; Outlook Stable; and
AUD17.1m Class AB affirmed at 'AAAsf'; Outlook Stable.

RESIMAC 2011-1:
AUD154.1m Class A affirmed at 'AAAsf'; Outlook Stable; and
AUD13.8m Class AB affirmed at 'AAAsf'; Outlook Stable.

RESIMAC 2012-1:
AUD141.3m Class A1-R affirmed at 'AAAsf'; Outlook Stable;
AUD67.3m Class A2 affirmed at 'AAAsf'; Outlook Stable; and
AUD24.2m Class AB affirmed at 'AAAsf'; Outlook Stable.

RESIMAC 2013-1:
USD260.0m Class A2-B affirmed at 'F1+sf';
AUD0m Class A2-R notes: 'AAAsf'; Outlook Stable;
AUD180.8m Class A3 notes: 'AAAsf'; Outlook Stable; and
AUD44.6m Class AB notes: 'AAAsf'; Outlook Stable.

RESIMAC 2014-1:
USD180.0m Class A1 notes 'AAAsf'; Outlook Stable; 
AU423.6m Class A2 notes: 'AAAsf'; Outlook Stable; and
AUD33.8m Class AB notes: 'AAAsf'; Outlook Stable