Fitch Affirms Nifty Warehouse No. 1 at 'AAAsf'; Outlook Stable
(The following statement was released by the rating agency) SYDNEY, August 14 (Fitch) Fitch Ratings has affirmed two classes of notes issued by Nifty Warehouse Trust No. 1. The transaction is a securitisation of auto loans and leases originated by Nissan Financial Services Australia (NFSA). The notes were issued by Perpetual Corporate Trust Limited in its capacity as trustee of the trust. The rating actions are listed below: AUD175 million Class A1 notes affirmed at 'AAAsf'; Outlook Stable; and AUD175 million Class A2 notes affirmed at 'AAAsf'; Outlook Stable. KEY RATING DRIVERS The affirmation reflects Fitch's view that available credit enhancement supports the notes at their current ratings, the agency's expectations of Australia's economic conditions and the credit quality and performance of the underlying loans and leases, which remain within the agency's expectations. The collateral pool is subject to excess concentration parameters and eligibility criteria to limit pool concentration of loan product and asset types, obligor and geographic exposure, and various asset characteristics. Gross and net losses have tracked within Fitch's expectations and excess spread has been sufficient to cover all losses experienced by the trust. Fitch has observed that recovery rates have been falling across the auto industry. However, this has not affected the Nifty transaction. The lower recovery rates are due to reduced demand for used cars as new cars have become more affordable, thus lowering resale values of used cars. Conversely, in stressed conditions, Fitch expects recovery rates to improve. This transaction has a two-year availability period that expires on 17 June 2019. The transaction includes performance triggers to mitigate portfolio deterioration. RATING SENSITIVITIES Fitch considers the prospect of a downgrade as remote due to the pool's expected performance and the existence of adequate excess spread and subordination. USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G-10 Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action. DATA ADEQUACY Fitch has checked the consistency and plausibility of the information it has received about the performance of the asset pool and the transaction. There were no findings that were material to this analysis. Fitch has not reviewed the results of any third-party assessment of the asset portfolio as part of its ongoing monitoring. As part of its ongoing monitoring, Fitch reviewed a small targeted sample of NFSA's 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 The information below was used in the analysis: Loan-by-loan data provided by NFSA as at June 2017 Transaction reporting data provided by NFSA as at June 2017 The issuer has informed Fitch that not all relevant underlying information used in the analysis of the rated notes is public. Contacts: Lead Surveillance Analyst Steve Jun Analyst +61 2 8256 0364 Fitch Australia Pty Ltd Level 15, 77 King St, Sydney NSW 2000 Committee Chairperson Natasha Vojvodic Senior Director +61 2 8256 0350 Media Relations: Leslie Tan, Singapore, Tel: +65 67 96 7234, Email: leslie.tan@fitchratings.com. Additional information is available on www.fitchratings.com Applicable Criteria Global Consumer ABS Rating Criteria (pub. 25 May 2017) here Global Structured Finance Rating Criteria (pub. 03 May 2017) here Structured Finance and Covered Bonds Counterparty Rating Criteria (pub. 23 May 2017) here Structured Finance and Covered Bonds Counterparty Rating Criteria: Derivative Addendum (pub. 23 May 2017) here Additional Disclosures Dodd-Frank Rating Information Disclosure Form here Solicitation Status here#solicitation Endorsement Policy here ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: here. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEB SITE AT WWW.FITCHRATINGS.COM. PUBLISHED RATINGS, CRITERIA, AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. 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