OREANDA-NEWS. Fitch Ratings has affirmed two classes of notes issued through Kingfisher NZ Trust 2008-1, a transaction backed by pools of New Zealand conforming residential mortgages originated by

ANZ Bank New Zealand Limited (ANZNZ, AA-/Stable/F1+). The rating actions are as follows:

Class A notes affirmed at 'F1+sf'; and
NZD6,706.9m, Class B2 (ISIN NZKNZD1022G6) notes affirmed at 'AAAsf'; Outlook Stable.

KEY RATING DRIVERS
The affirmations reflect Fitch's view that available credit enhancement is sufficient to support the notes' current ratings, and the agency's expectations of New Zealand's economic conditions. The credit quality and performance of the loans in the collateral pool have remained in line with Fitch's expectations.

At end-June 2015, loans in 30+ days arrears accounted for 0.4% of the underlying mortgage balance, and have tracked below 0.8% for the life of the transaction. All losses have been entirely covered by excess spread.

RATING SENSITIVITIES
The transaction is sensitive to increases in defaults. However, the analysis excludes credit to excess spread, which has been strong and stable.

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 ANZ Bank New Zealand Limited compared to ANZ Bank New Zealand Limited's 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.

Kingfisher NZ Trust 2008-1 remains within its substitution period, ending in October 2018.
Fitch is comfortable with the long revolving period because the portfolio stratifications have not changed significantly since initial issue. ANZNZ's product mix has not materially changed over this time, and the portfolio is performing as expected.

A comparison of the transaction's representations, warranties and enforcement mechanisms (RW&Es) to those of typical RW&Es for this asset class is available by accessing the reports and/or links under Related Research below.