OREANDA-NEWS. Fitch Ratings has affirmed the ratings for Medallion NZ Trust 2009-1R Class A notes. The transaction is a securitisation of New Zealand conforming residential mortgages originated by ASB Bank Limited (ASB, AA-/Stable). The rating action is as follows:

NZD 4bn Class A notes affirmed at 'AAAsf'; Outlook Stable.

KEY RATING DRIVERS
The affirmations reflect Fitch's view that the available credit enhancement is sufficient to support the notes' current ratings, and can withstand deterioration from the current economic conditions in New Zealand in line with the agency's expectations. The credit quality and performance of the loans in the collateral pools have also remained in line with expectations.

At end-September 2015, 30+ days arrears were low at 0.39% of the underlying mortgage balance, and there have been no losses to date.

RATING SENSITIVITIES
The transaction rating is sensitive to increases in defaults. However, the analysis excludes credit to excess spread, which has been strong and stable to date.

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 ASB 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.

This transaction has a 10-year revolving period of which less than four years remain. Fitch is comfortable with the long revolving period because the portfolio stratifications have not changed significantly since initial issue, ASB's product mix has not materially changed over this time, 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 available by accessing the reports and/or links under Related Research below.