Fitch Ratings has assigned final ratings to RESIMAC Triomphe Trust - RESIMAC Premier Series 2021-1's mortgage-backed scheduled-amortisation, soft-bullet and pass-through floating-rate notes.

The issuance consists of notes backed by a pool of first-ranking Australian residential full-documentation mortgage loans originated by RESIMAC Limited. The notes will be issued by Perpetual Trustee Company Limited in its capacity as trustee of RESIMAC Triomphe Trust - RESIMAC Premier Series 2021-1.

RATING ACTIONSENTITY/DEBT	RATING		PRIOR

RESIMAC Triomphe Trust - RESIMAC Premier Series 2021-1

A1 USQ8068TAA80

LT	AAAsf 	New Rating		AAA(EXP)sf

A2 AU3FN0058459

LT	AAAsf 	New Rating		AAA(EXP)sf

A3 AU3FN0058616

LT	AAAsf 	New Rating		AAA(EXP)sf

AB AU3FN0058467

LT	NRsf 	New Rating		NR(EXP)sf

B AU3FN0058475

LT	NRsf 	New Rating		NR(EXP)sf

C AU3FN0058483

LT	NRsf 	New Rating		NR(EXP)sf

D AU3FN0058491

LT	NRsf 	New Rating		NR(EXP)sf

E AU3FN0058509

LT	NRsf 	New Rating		NR(EXP)sf

F AU3FN0058517

LT	NRsf 	New Rating		NR(EXP)sf

G AU3FN0058525

LT	NRsf 	New Rating		NR(EXP)sf

VIEW ADDITIONAL RATING DETAILS

TRANSACTION SUMMARY

The total collateral pool consisted of 3,266 obligors, with loans totalling AUD1.5 billion, at the 13 January 2021 cut-off date.

KEY RATING DRIVERS

Sufficient Credit Enhancement Mitigates Expected Coronavirus Impact: Fitch has updated criteria assumptions for Australia to account for the anticipated effects of the coronavirus pandemic. A steady-state arrears adjustment of 0.4% was applied and had an immaterial impact on the 'AAAsf' weighted-average foreclosure frequency (WAFF) modelled. Steady state arrears are calculated using the five-year average 30+ day arrears to December 2019 for RESIMAC's conforming mortgage portfolio multiplied by 1.2.

The 'AAAsf' WAFF of 11.4%, from 10.1% in RESIMAC 2020-3, is driven by the weighted-average (WA) unindexed loan/value ratio (LVR) of 68.5%, WA seasoning of 14 months and, under Fitch's methodology, investment loans of 48.6%. The higher WA LVRs, shorter seasoning and higher composition of investment loans are the key determinants of the WAFF difference to RESIMAC 2020-3.

The 'AAAsf' lenders' mortgage insurance (LMI) dependent weighted-average recovery rate (WARR) of 57.5% is driven by the portfolio's WA indexed scheduled LVR of 72.5%, 19.5% of the pool benefiting from LMI and the portfolio 'AAAsf' WA market value decline (WAMVD) of 58.7%. The class A1, A2 and A3 notes benefit from credit enhancement of 10%. The US dollar denominated class A1 note is hedged by the currency-swap provider.

See the following links for Fitch's pandemic-related credit views and analytical approach:

'Global Economic Outlook: December 2020', published on 7 December 2020, available at https://www.fitchratings.com/site/re/10145707

'Fitch Ratings Coronavirus Scenarios: Baseline and Downside Cases - Update', published on 7 December 2020, available at https://www.fitchratings.com/site/re/10145938 and

'Global SF Rating Assumptions Updated to Reflect Coronavirus Risk', published on 3 April 2020, available at www.fitchratings.com/site/pr/10117224.

In addition, analytical notes relevant for Australian and New Zealand RMBS transactions are discussed in the commentary:

'Fitch Ratings' Approach to Addressing Coronavirus-Related Risks for Australian, NZ RMBS', published on 5 May 2020, available at www.fitchratings.com/site/pr/10120792 and

'Fitch Ratings Updates Australia, NZ RMBS Criteria Assumptions on Coronavirus Effects', published on 28 July 2020, available at www.fitchratings.com/site/pr/10130287.

Limited Liquidity Risk from Payment Holidays: There were no borrowers in the pool on payment deferrals as of the cut-off date. However, we reviewed the transaction's ability to survive a significant proportion of borrowers taking a payment holiday. The transaction can withstand 56% of the portfolio being granted payment holidays before needing to draw on principal or the liquidity facility. The transaction benefits from a liquidity facility sized at 0.75% of the invested note balance and floored at the lesser of AUD1,125,000 and the performing loan balance prior to the call date and AUD1,125,000 post-call.

Low Operational and Servicing Risk: RESIMAC is a non-bank financial institution, with a history dating back to 1985. Fitch undertook an operational review and found that the operations of the originator and servicer were comparable with those of other Australian conforming lenders, as evident from the historical performance of the RESIMAC Premier Series. We do not expect the coronavirus to disrupt operations, as staff are able to work remotely.

Economic Rebound in Medium Term Supports Outlook: Fitch expects near-term mortgage performance to deteriorate, but to continue to support the Stable Outlook on the notes. We forecast Australia's unemployment rate at 6.2% in 2021 with GDP growth of 3.8%. We expect GDP growth to stabilise in 2022 at 2.7% and the unemployment rate to continue to improve, to 5.6%.

RATING SENSITIVITIES

Unanticipated increases in the frequency of defaults and loss severity on defaulted receivables could produce loss levels higher than Fitch's base case and are likely to result in a decline in credit enhancement and remaining loss-coverage levels available to the notes. Decreased credit enhancement may make certain note ratings susceptible to negative rating action, depending on the extent of the coverage decline. Hence, Fitch conducts sensitivity analysis by stressing a transaction's initial base-case assumptions.

This section provides insight into the model-implied sensitivities the transaction faces when assumptions - WAFF or WARR - are modified, while holding others equal. The modelling process uses the modification of default and loss assumptions to reflect asset performance in up and down environments. The results below should only be considered as one potential outcome, as the transaction is exposed to multiple dynamic risk factors. Fitch modifies the recovery rate to isolate the effect of a change in recovery proceeds at the borrower level.

Factors that could, individually or collectively, lead to positive rating action/upgrade:

The rated notes are at 'AAAsf', which is the highest level on Fitch's scale. The ratings cannot be upgraded.

Factors that could, individually or collectively, lead to negative rating action/downgrade:

A longer pandemic than Fitch expects that leads to deterioration in macroeconomic fundamentals and consumers' financial positions in Australia beyond Fitch's baseline scenario. Available credit enhancement cannot compensate for higher credit losses and cash flow stresses, all else being equal.

Fitch conducted sensitivity analysis by increasing gross default levels and decreasing recovery rates over the life of the transaction.

Downgrade Sensitivity:

Notes: A1 / A2 / A3

Rating: AAAsf / AAAsf / AAAsf

Increase defaults by 15%: AAAsf / AAAsf / AAAsf

Increase defaults by 30%: AAAsf / AAAsf / AAAsf

Reduce recoveries by 15%: AAAsf / AAAsf / AAAsf

Reduce recoveries by 30%: AAAsf / AAAsf / AAAsf

Increase defaults by 15% and reduce recoveries by 15%: AAAsf / AAAsf / AAAsf

Increase defaults by 30% and reduce recoveries by 30%: AAAsf / AA+sf / AA+sf

The transaction structure supports LMI-independent ratings for the class A1, A2 and A3 notes. LMI is not required to support the ratings due to the level of credit support provided by the lower notes.

Coronavirus Downside Scenario Sensitivity:

Under Fitch's downside scenario, re-emergence of infections in major economies prolongs the health crisis and confidence shock, prompts extensions or renewals of lockdown measures and prevents a financial-market recovery. Fitch tested this scenario by increasing defaults by 15% and decreasing recoveries by 15%.

Notes: A1 / A2 / A3

Rating: AAAsf / AAAsf / AAAsf

Impact on note ratings of downside scenario: AAAsf / AAAsf / AAAsf

BEST/WORST CASE RATING SCENARIO

International scale credit ratings of Structured Finance transactions have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of seven notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of seven notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAAsf' to 'Dsf'. Best- and worst-case scenario credit ratings are based on historical performance. For more information about the methodology used to determine sector-specific best- and worst-case scenario credit ratings, visit https://www.fitchratings.com/site/re/10111579.

USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10

Fitch was provided with Form ABS Due Diligence-15E ('Form 15E') as prepared by Deloitte Touche Tohmatsu. The third-party due diligence described in Form 15E focused on a comparison of certain characteristics with respect to sample loans. Fitch considered this information in its analysis and it did not have an effect on Fitch's analysis or conclusions.

DATA ADEQUACY

Fitch reviewed the results of a third-party assessment conducted on the asset portfolio information, and concluded that there were no findings that affected the rating analysis. Fitch conducted a review of a small targeted sample of the originator'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, and together with any assumptions referred to above, Fitch's assessment of the information relied upon for the agency's rating analysis according to its applicable rating methodologies indicates that it is adequately reliable.

DATE OF RELEVANT COMMITTEE

26 February 2021

REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING

The principal sources of information used in the analysis are described in the Applicable Criteria.

The issuer has informed Fitch that not all relevant underlying information used in the analysis of the rated notes is public.

REPRESENTATIONS, WARRANTIES AND ENFORCEMENT MECHANISMS

A description of the transaction's representations, warranties and enforcement mechanisms (RW&Es) that are disclosed in the offering document and which relate to the underlying asset pool is available by clicking the link to the Appendix. 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'.

ESG CONSIDERATIONS

Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. For more information on Fitch's ESG Relevance Scores, visit www.fitchratings.com/esg

Additional information is available on www.fitchratings.com

(C) 2021 Electronic News Publishing, source ENP Newswire