OREANDA-NEWS. Fitch Ratings has affirmed the rating on Light Trust No.5R's Class A notes. The transaction is a securitisation of first-ranking Australian conforming residential mortgages originated by People's Choice Credit Union (a trading name of Australian Central Credit Union Ltd.). The rating action is as follows:

AUD549.9m Class A notes 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 ratings, and the agency's expectations of Australia's economic conditions. The credit quality and performance of the loans in the collateral pool also remain in line with expectations.

At 29 February 2016, 30+ days arrears stood at 0.40%, below Fitch's 3Q15 Dinkum Index of 0.91%. There have been no foreclosures since issuance. Lender's mortgage insurance (LMI) covered 42.3% of the pool as at the last substitution on 21 March 2016; 6.7% of the pool was covered by Genworth Financial Mortgage Insurance Pty Limited (Insurer Financial Strength Rating A+/Stable) and 35.6% by QBE Lenders Mortgage Insurance Ltd (Insurer Financial Strength Rating AA-/Stable).

The transaction remains within its 10-year revolving period, which ends in April 2025, and no amortisation of the notes has occurred to date. Fitch is comfortable that the credit profile of the transaction will be maintained during the revolving period as adequate loan eligibility criteria and pool parameters are in place.

RATING SENSITIVITIES
The Class A notes are currently independent of downgrades to the LMI providers' ratings. The Class A notes may become dependent on the LMI providers' ratings should the transaction's portfolio materially change during the revolving period. At Fitch's 'AAAsf' breakeven default rate of 23.53%, the Class A notes can withstand an additional 19.71% 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 People's Choice Credit Union 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.