May 30, 2013 / 4:37 AM / 4 years ago

Fitch Affirms Series 2012-1E REDS EHP Trust and Series 2012-1E REDS Trust Ratings

(The following statement was released by the rating agency) SYDNEY, May 29 (Fitch) Fitch Ratings has affirmed Series 2012-1E REDS EHP Trust and Series 2012-1E REDS Trust, a securitisation of first-ranking small balance auto loans and Australian residential mortgages originated by Bank of Queensland Equipment Finance Ltd and the Bank of Queensland (BoQ, 'BBB+'/Stable/'F2') respectively. The rating actions are as follows: Series 2012-1E REDS EHP Trust AUD216.1m Class A-2A (ISIN AU0000RFAHA9) affirmed at 'AAAsf'; Outlook Stable GBP69.1m Class A-2G (ISIN XS0784745050) affirmed at 'AAAsf'; Outlook Stable AUD25.7m Class B (ISIN AU3FN0015558) affirmed at 'AAsf'; Outlook Stable AUD20.5m Class C affirmed at 'Asf'; Outlook Stable AUD19.7m Class D affirmed at 'BBBsf'; Outlook Stable AUD18m Class E affirmed at 'BBsf'; Outlook Stable Series 2012-1E REDS Trust AUD651.2m Class A1 (ISIN AU3FN0017281) affirmed at 'AAAsf'; Outlook Stable AUD50m Class A2A (ISIN AU3FN0017299) affirmed at 'AAAsf'; Outlook Stable GBP100m Class A2S (ISIN XS0857670110) affirmed at 'AAAsf'; Outlook Stable AUD45.1m Class AB (ISIN AU3FN0017307) affirmed at 'AAAsf'; Outlook Stable AUD20.1m Class B (ISIN AU3FN0017315) affirmed at 'AA-sf'; Outlook Stable Key Rating Drivers The rating actions reflect Fitch's view that credit enhancement levels are able to support the notes' current ratings. The credit quality and performance of the loans in the respective collateral pools remain in line with the agency's expectations. Principal is being allocated pro rata since April-2013 as step-down test conditions have been satisfied for the Series 2012-1E REDS EHP transaction. For the Series 2012-1E REDS Trust, principal collections are being allocated to the repayment of the class A1 notes which have benefited from an increase in credit enhancement due to sequential amortisation and seasoning since issuance. The Series 2012-1E REDS EHP Trust as at end-April 2013, had 30+ day arrears at 0.14% of the underlying auto loan balance, while cumulative losses stood at AUD1.7m, all of which have been recovered through excess spread. The excess spread reserve has reached the maximum balance permitted under the documents, of AUD 2.31m, and will be available to cover any potential future losses. Series 2012-1E REDS Trust closed in November 2012 and had relatively small time period to report arrears and losses. When compared with other similar transactions, arrears and losses over this time span have been comparable and are below Fitch's Dinkum Index. As at 30-April-2013, 30+ arrears stood at 0.5% of the residential portfolio; while there has been one foreclosure to date, there has been no realised loss incurred by the transaction. All loans in the pool are covered by mortgage insurance from QBE Lenders' Mortgage Insurance Limited ('AA-'/Stable) and Genworth Financial Mortgage Insurance Pty Ltd. Rating Sensitivities In Fitch's rating sensitivity analysis, the likelihood of a downgrade of the senior note classes is remote, based on transaction performance. Contacts: Primary Analyst Spencer Wilson Associate Director +612 82560 320 Fitch Australia Pty Ltd. Level 15, 77 King St, Sydney, NSW 2000

Commitee Chairperson

Natasha Vojvodic Senior Director +612 82560 350 Media Relations: Iselle Gonzalez, Sydney, Tel: +61 2 8256 0326, Email: iselle.gonzalez@fitchratings.com. Additional information is available at www.fitchratings.com. The source of information used to assess these rating was the servicer, BoQ. The issuer has informed Fitch that not all relevant underlying information used in the analysis of the rated notes is public. Applicable criteria, "Global Structured Finance Rating Criteria", dated 24 May 2013; "Counterparty Criteria for Structured Finance and Covered Bonds", dated 13 May 2013 and "Counterparty Criteria for Structured Finance and Covered Bonds: Derivative Addendum", dated 13 May 2013. "APAC Consumer ABS Rating Criteria", dated 2 August 2012, "APAC Residential Mortgage Criteria Addendum - Australia", dated 3 August 2012, "Global Criteria for Lenders' Mortgage Insurance in RMBS" dated 7 Sept 2012 and "APAC Residential Mortgage Criteria", dated 3 August 2012 are available at www.fitchratings.com Applicable Criteria and Related Research: Global Structured Finance Rating Criteria here Counterparty Criteria for Structured Finance and Covered Bonds here Counterparty Criteria for Structured Finance and Covered Bonds: Derivative Addendum here APAC Consumer ABS Rating Criteria here APAC Residential Mortgage Criteria Addendum — Australia here Global Criteria for Lenders’ Mortgage Insurance in RMBS here APAC Residential Mortgage Criteria here Additional Disclosure Solicitation Status 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 WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE. Fitch Australia Pty Ltd holds an Australian financial services licence (AFS licence no. 337123) which authorises it to provide credit ratings to wholesale clients only. Credit ratings information published by Fitch is not intended to be used by persons who are retail clients within the meaning of the Corporations Act 2001.

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