OREANDA-NEWS.  Fitch Ratings has affirmed the rating of Pinnacle Series Trust 2014-SST's Class A notes. The transaction is a securitisation of first-ranking prime Australian residential mortgages originated by Police & Nurses Limited (P&N), trading as P&N Bank. The notes are issued by BNY Trust Company of Australia Limited as trustee of the Pinnacle Series Trust 2014-SST. The rating action is as follows:

AUD326.8m Class A notes affirmed at 'AAAsf'; Outlook Stable.

KEY RATING DRIVERS
The affirmation reflects Fitch's view that credit enhancement is sufficient to support the current rating, and Fitch's expectations of Australia's economic conditions.

Arrears have remained well below Fitch's Dinkum of 1.08%. At 31 January 2015, 30+ days arrears tracked at 0.45%.

Fitch's calculated weighted average indexed loan to value ratio (LVR) was 63.7%, compared to 66.0% before indexation. The pool is highly concentrated in Western Australia, with 97.6% of mortgages in the portfolio secured over properties in the state.

There have been no recorded losses since the transaction closed in February 2014. QBE Lenders' Mortgage Insurance Limited (AA-/Stable) provided lenders' mortgage insurance to 8.5% of the pool at end January 2015, and Genworth Financial Mortgage Insurance Pty Ltd (A+/Stable) covered 17.7%.

RATING SENSITIVITIES
The 'AAAsf' modelled loss severity after LMI was 40%. At this level the Class A notes could withstand a default rate of 26.7% This analysis excludes any credit to excess spread.

This transaction has a 10 year revolving period, of which nine and a half years remain. Fitch is comfortable with the long revolving period because the transaction has portfolio parameters, the portfolio stratifications have not changed significantly since initial issue, and the portfolio is performing as expected.

A comparison of the transaction's 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 under Related Research below.