OREANDA-NEWS. Fitch Ratings has affirmed the ratings of Barton Series 2013-1R Trust as shown below (the note balance is as of 31 May 2015). The transaction is a securitisation of first-ranking Australian residential mortgages originated by Beyond Bank Australia.

AUD376.4m Class A (AU3FN0019600) affirmed at 'AAAsf'; Outlook Stable.

KEY RATING DRIVERS
The affirmation reflects Fitch's view that the available credit enhancement is sufficient to support the notes' current rating, and the agency's expectations of Australia's economic conditions. Credit quality and performance of the underlying loans have remained within the agency's expectations.

At 31 May 2015, 30+ days arrears were 0.21%, compared to Fitch's 1Q15 Dinkum RMBS Prime Index of 1.17%. Lenders' mortgage insurance (LMI) covered 21.9% of the underlying pool, provided by Genworth Financial Mortgage Insurance Pty Limited (Insurer Financial Strength Rating A+/Stable) (11.7%) and QBE Lenders Mortgage Insurance Ltd (Insurer Financial Strength Rating AA-/Stable) (10.2%).

The transaction remains within its 10-year substitution period which ends in 2023, and no amortisation of the notes has occurred to date. Fitch is comfortable with the long revolving period as the portfolio stratifications have not changed significantly since initial issue, Beyond Bank Australia's product mix has not materially changed over this time, and the portfolio is performing as expected.

RATING SENSITIVITIES
The Class A notes are independent of downgrades to the LMI provider's ratings.

At the 'AAAsf' modelled loss severity of 34.59%, the transaction can withstand an increase in foreclosures to 17.06%.

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

DATA ADEQUACY
Fitch conducted a file review of 10 sample loan files focusing on the underwriting procedures conducted by Beyond Bank Australia 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.

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.