OREANDA-NEWS.  Fitch Ratings has assigned South African Securitisation Programme (RF) Limited's (SASP) Series 1 class A20 and A21 notes final National Long-term ratings, as follows:

ZAR177m Class A20 notes: 'AAA(zaf)'; Outlook Stable
ZAR155m Class A21 notes: 'AAA(zaf)'; Outlook Stable

Fitch has simultaneously affirmed the National Long-term ratings on the outstanding notes as follows:

ZAR189m Class A15 notes: 'AAA(zaf)'; Outlook Stable
ZAR180m Class A16 notes; 'AAA(zaf)'; Outlook Stable
ZAR182m Class A17 notes; 'AAA(zaf)'; Outlook Stable
ZAR200m Class A18 notes; 'AAA(zaf)'; Outlook Stable
ZAR50m Class A19 notes; 'AAA(zaf)'; Outlook Stable
ZAR99m Class 3B4 notes; 'A(zaf)'; Outlook Stable
ZAR35m Class 3C4 notes; 'BBB+(zaf)'; Outlook Stable

The class A20 and A21 notes have been issued to refinance the maturing class A12 and A14 notes.

The transaction is a securtisation of securitisation of equipment leases originated by Sasfin Bank Limited (Sasfin), its commercial partner Sunlyn, super non-disclosed suppliers (SNDs) and disclosed suppliers in South Africa.

KEY RATING DRIVERS
Obligor Default Risk Paramount
The transaction securitises a granular pool of equipment leases granted to South African SME and other obligors. The key risk factor in the analysis was the obligor default risk. Fitch assigned a base case default probability equivalent to the 'B+' international-scale rating to each obligor. Given the nature of the leased products and their limited liquidation value, the main rating driver is the expected default rate, whereas recoveries carry a smaller weight.

Adequate Servicing Capability
Sasfin is the appointed servicer at closing. The servicer is allowed to delegate collections to third parties, although delegation is limited to 10% of the portfolio, unless such party has been reviewed by Fitch. Fitch deems Sasfin's ability to service the portfolio adequate, given its extensive experience in the equipment leasing sector.

Triggers Protect Portfolio Composition
The evergreen revolving period will end on the occurrence of an early-amortisation event. Eligibility and concentration criteria, in combination with stop-purchase and stop-issuance triggers, provide protection against the deterioration of the portfolio composition.

Good Past Performance
Series 1 was established in its current form in 2007. Fitch has since monitored the performance, which has consistently been in line with the agency's expectations. As of end-May 2015, the 12-month annualised average default and loss rates were 1.1% and 1.2%, respectively.

Stable Outlook despite Sovereign
The asset outlook for South African equipment leases remains stable. Lease delinquency levels continue to be low. Fitch expects some deterioration compared with the most recent historical performance, due to the overall slowdown of the South African economy. Adverse rating action is unlikely, as rated transactions generally benefit from sound asset yields supporting a good level of excess spread. Additionally, Fitch has stressed in its analysis such potential performance deterioration.

RATING SENSITIVITIES
Rating sensitivity to increased default probabilities (class A / B / C)
Current ratings: 'AAA(zaf)' / 'A(zaf)' / 'BBB+(zaf)'
Increase default probability by 1.25x: 'AA-(zaf)' / 'A-(zaf)' / 'BBB(zaf)'
Increase default probability by 1.5x: 'A(zaf)' / 'BBB-(zaf)' / 'BB+(zaf)'

Rating sensitivity to reduced recovery rates (class A / B / C)
Current ratings: 'AAA(zaf)' / 'A(zaf)' / 'BBB+(zaf)'
Reduce recovery rates by 0.75x: 'AAA(zaf)' / 'A(zaf)' / 'BBB+(zaf)'
Reduce recovery rates by 0.5x: 'AAA(zaf)' / 'A(zaf)' / 'BBB+(zaf)'

Rating sensitivity to increased default probability and correlation, and reduced recovery rate (class A / B / C)
Current ratings: 'AAA(zaf)' / 'A(zaf)' / 'BBB+(zaf)'
Increase default probability by 1.25x, reduce recovery rates by 0.75x, and multiply country correlation by 2x: 'AA-(zaf)' / 'BBB+(zaf)' / 'BBB-(zaf)'

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

Fitch conducted a review of a small targeted sample of Sasfins origination files and found the information contained in the reviewed files to be adequately consistent with the originator's policies and practices and the other information provided to the agency about the asset portfolio.

Overall, Fitch's assessment of the asset pool information relied upon for the agency's rating analysis according to its applicable rating methodologies indicates that it is adequately reliable.

SOURCES OF INFORMATION
Historical data provided by Sasfin and monthly investor reports.