(The following statement was released by the rating agency)
Link to Fitch Ratings' Report: FP Turbo Series 2016-1 Trust
SYDNEY, December 20 (Fitch) Fitch Ratings has assigned FP Turbo
Trust final ratings as listed below. The transaction is a
finance and operating vehicle leases originated by Fleet
Partners Pty Limited
(FleetPartners). The ratings are as follows:
AUD66.00m Class A1 notes: 'F1+sf'
AUD165.00m Class A2 notes: 'AAAsf'; Outlook Stable
AUD31.02m Class B notes: 'NRsf'
AUD12.87m Class C notes: 'NRsf'
AUD8.58m Class D notes: 'NRsf'
AUD15.51m Class E notes: 'NRsf'
AUD7.92m Class F notes: 'NRsf'
AUD6.60m Class G notes: 'NRsf'
AUD16.50m Seller notes: 'NRsf'
The notes are issued by Perpetual Trustee Company Limited in its
trustee of FP Turbo Series 2016-1 Trust.
The total collateral pool consisted of 10,032 receivables with a
of AUD322,420,816 at the 25 November 2016 cut-off date.
KEY RATING DRIVERS
Residual Value Risk Present: This is the second term
FleetPartners to include operating leases within the lease
lessees are a broad mix of small-to-medium entities (SMEs)
through to large
corporations and government entities. Residual value (RV) and
risk are present within the transaction due to the inclusion of
leases, along with credit risk. Fitch assumes 'AAAsf' RV losses
Large Lessee Concentration: The pool's 20 largest obligors
account for about
37.4% of the asset balance. Fitch deems this concentration
higher than we
usually observe in consumer ABS transactions. Fitch has
default assumptions while considering lessee concentrations and
risks, in line with its SME criteria.
Sufficient Enhancement: The transaction incorporates a
pay structure, consistent with other ABS transactions. Initial
enhancement (CE) to the 'AAAsf' notes totals 30.0%. Pro-rata
commence when hard CE reaches 45.0%, subject to transaction
CE is sufficient to cover the Fitch 'AAAsf' stressed cumulative
assumption in all Fitch scenarios. The transaction also
comprises a vehicle
servicing account to enable the issuer to fund operating lease
Mixed Collateral Included: The collateral backing the
lease receivables backed by a mix of cars, light and heavy
and equipment, with a weighted-average seasoning of 19 months
and an average
receivable size of AUD32,139. Operating leases comprise 82% and
18% of the portfolio. Historically, FleetPartners' 30+ day
generally tracked below Fitch's Dinkum ABS Index
Increases in the frequency of defaults, decreases in recoveries
or decreases in
vehicle sale prices could produce loss levels higher than
which could result in negative rating action on the notes. Fitch
sensitivity of FP Turbo Series 2016-1 Trust's ratings to changes
factors and a combination of these factors over the life of the
Its analysis found that the rating of the class A1 notes was not
affected by any
of the stress scenarios. The class A2 notes were affected as
Effect on the note rating of increased defaults:
Increase base-case defaults by 10%: 'AA+sf'
Increase base-case defaults by 25%: 'AA+sf'
Increase base-case defaults by 50%: 'AA-sf'
Effect on the note rating of decreased recoveries:
Reduce base-case recovery and RV sales proceeds by 10%: 'AA+sf'
Reduce base-case recovery and RV sales proceeds by 25%: 'AA-sf'
Reduce base-case recovery and RV sales proceeds by 50%: 'BBB-sf'
Effect on the note rating of increased defaults and decreased
Increase default base-case by 10%; reduce recovery and RV sales
proceeds by 10%:
Increase default base-case by 25%; reduce base-case recovery and
proceeds by 25%: 'Asf'
Increase default base-case by 50%; reduce base-case recovery and
proceeds by 50%: 'BBsf'
USE OF THIRD-PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G-10
Form ABS Due Diligence-15E was not provided to, or reviewed by,
relation to this rating action.
REPRESENTATIONS, WARRANTIES AND ENFORCEMENT MECHANISMS
A description of the transaction's representations, warranties
mechanisms (RW&Es) disclosed in the offering document that
relate to the
underlying asset pool is available by accessing the appendix
"Related Research" below. The appendix also contains a
comparison of these RW&Es
to those Fitch considers typical for the asset class as detailed
in the Special
Report titled, "Representations, Warranties and Enforcement
Mechanisms in Global
Structured Finance Transactions," dated 31 May 2016.
As part of its ongoing monitoring, Fitch conducted a review of a
sample of FleetPartners' origination files and found the
in the reviewed files to be adequately consistent with the
and practices and the other information provided to the agency
about the asset
Fitch sought to receive a third-party assessment conducted on
portfolio information, but none was made available. Overall,
of the asset pool information relied upon for the agency's
according to its applicable rating methodologies indicates that
it is adequately
Key rating drivers and rating sensitivities are further
discussed in the
corresponding new issue report titled, "FP Turbo Series 2016-1
SOURCES OF INFORMATION
The information below was used in the analysis:
-Line-by-line information and stratifications on the transaction
by KPMG as at 25 November 2016.
-Line-by-line data on defaults and recoveries since 2002.
-Sale proceeds from remarketed vehicles since 2002, split into
sale proceeds and
-Delinquency data starting in 2008 and split into different
-Transaction documentation provided by King & Wood Mallesons,
The issuer has informed Fitch that not all relevant underlying
in the analysis of the rated notes is public.
Brenden Asplin, CFA
+612 8256 0340
Level 15, 77 King St, Sydney NSW 2000
+612 8256 0333
+612 8256 0350
Media Relations: Leslie Tan, Singapore, Tel: +65 67 96 7234,
Additional information is available at www.fitchratings.com
Counterparty Criteria for Structured Finance and Covered Bonds
(pub. 01 Sep
Counterparty Criteria for Structured Finance and Covered Bonds:
Addendum (pub. 18 Jul 2016)
Criteria for Rating Granular Corporate Balance-Sheet
Securitisations (SME CLOs)
(pub. 10 Oct 2016)
Global Consumer ABS Rating Criteria (pub. 01 Dec 2016)
Global Consumer ABS Rating Criteria - EMEA Auto Residual Value
Addendum (pub. 01
Global Rating Criteria for CLOs and Corporate CDOs (pub. 09 Sep
Global Structured Finance Rating Criteria (pub. 27 Jun 2016)
FP Turbo Series 2016-1 Trust - Appendix
Representations, Warranties and Enforcement Mechanisms in Global
Dodd-Frank Rating Information Disclosure Form
ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND
PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS
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DETAILS OF THIS
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ON THE FITCH
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