OREANDA-NEWS. Fitch Ratings has affirmed the Class A notes for BMW Finance Trust 2012-1 as follows:

AUD600.0m Class A affirmed at 'AAAsf'; Outlook Stable

The transaction is a securitisation of auto receivables originated by BMW Australia Finance Ltd or Alphera Financial Services.

KEY RATING DRIVERS
The affirmations reflect Fitch's view that the transaction has performed within expectations since closing and in line with its expectations of Australia's economic conditions. Total net losses have been below Fitch's base cases to date and excess spread has covered any losses incurred. The ratings also reflect the quality of the collateral, and performance of the underlying loans, which have remained in line with the agency's expectations.

At 28 February 2015, 30+ day delinquencies were 1.09%, above the Dinkum ABS Index of 1.06%. To date, total net losses have tracked below Fitch's base case and excess spread has been more than sufficient to cover all losses experienced.

At 28 February 2015, the collateral pool consisted of 18,371 loans with a total portfolio balance of AUD700.9m, an average contract balance of AUD37,988 and the weighted average remaining term was 36 months.

The transaction remains within its second two-year substitution period, which ends in August 2016, and to date, all principal proceeds have been allocated to purchasing additional receivables. Fitch is comfortable with the revolving period as there are portfolio parameters and the portfolio stratifications have not changed significantly since initial issue, BMW's product mix has not materially changed over this time, and the portfolio is performing as expected.

RATING SENSITIVITIES
The prospect for downgrades is considered remote at present, given the expected performance of the pool as well as adequate excess spread and subordination. A significant and unexpected increase in delinquencies, defaults and losses would be necessary before any negative rating action would be considered.

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 given under Related Research below.