OREANDA-NEWS. Fitch Ratings has affirmed the ratings for PUMA Series 2014-3P Class A and B1 notes. The transaction is a securitisation of Australian conforming residential mortgages originated by Macquarie Bank Limited. The rating action is as follows (balance as of end-December 2015):

AUD 924.0m Class A (ISIN AU3FN0024196) notes affirmed at 'AAAsf'; Outlook Stable; and
AUD 32.6m Class B1 (ISIN AU3FN0024204) 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 Australia's current economic conditions 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.

As of December 2015, 30+ days arrears were 1.16% compared to Fitch's 3Q15 Dinkum RMBS Prime Index of 0.91%. Lender's mortgage insurance (LMI) covered 100% of the pool; 98.3% Genworth Financial Mortgage Insurance Pty Limited (Insurer Financial Strength Rating A+/Stable) and 1.7% QBE Lenders Mortgage Insurance Ltd (Insurer Financial Strength Rating AA-/Stable).

The transaction is no longer in a revolving period which ended on 19 November 2015 and the notes have been amortising since then.

RATING SENSITIVITIES
The Class A notes is independent of downgrades to the LMI provider's ratings while the Class B1 notes can withstand a two notch downgrade to the LMI providers.

At Fitch's 'AAAsf' breakeven default rate of 11.95%, the Class A notes can withstand an additional 17.41% defaults at Fitch's 'AAAsf' loss severity. The Class AB notes can withstand an additional 6.48% defaults at Fitch's 'AAAsf' loss severity.

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 Macquarie Bank Limited 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.