OREANDA-NEWS. Fitch Ratings has affirmed the ratings of Kiwibank RMBS Trust Series 2009-1. The transaction is a securitisation of New Zealand conforming residential mortgages originated by Kiwibank Limited (Kiwibank, AA/Positive/F1+. The rating actions are as follows:

NZD576.0m Class A notes (ISIN NZKRMD1001G9) 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 New Zealand's economic conditions. Credit quality and performance of the underlying loans have remained within the agency's expectations. The transaction remains within its substitution period with principal collections being used to purchase additional receivables.

At 30 June 2015, 30+ days arrears stood at 0.1% and have tracked below 0.25% for the life of the transaction. There is no lenders' mortgage insurance, and there have been no losses to date.

The transaction remains within its 10 year substitution period, ending in July 2019, and no amortisation of the notes has occurred to date. Fitch is comfortable with the long revolving period because the portfolio stratifications have not changed significantly since initial issue, Kiwibank's product mix has not materially changed over this time, and the portfolio is performing as expected.

RATING SENSITIVITIES
Fitch's 'AAAsf' breakeven stressed default rate is 6.63%. The Class A notes can withstand an additional 3.19% in defaults at Fitch's 'AAAsf' loss severity. This analysis excludes credit to excess spread, which has been strong and stable since the transaction closed.

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 Kiwibank Limited compared to Kiwibank Limited's 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 transaction's representations, warranties and enforcement mechanisms (RW&Es) to those of typical RW&Es for this asset class is available by accessing the reports and/or links under Related Research below.