(The following was released by the rating agency)

Link to Fitch Ratings' Report: APAC Residential Mortgage Criteria Addendum - New Zealand http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=686379

SYDNEY, December 07 (Fitch) Fitch Ratings has released its New Zealand RMBS rating criteria as an addendum to the Asia-Pacific Residential Mortgage Criteria. The published criteria assumptions will be used for rating both new and existing RMBS transactions and will also apply to collateral used in New Zealand covered bond programmes. The criteria updates have no impact on existing ratings.

'The key credit issues with New Zealand RMBS are high household leverage and significant property price increases over the past decade,' said David Carroll, Director in Fitch's Structured Finance team. 'Residential mortgage collateral supporting Fitch's existing universe of New Zealand RMBS transactions and covered bond programmes is significant at over NZD36bn, approximately 20% of the whole residential mortgage lending market,' stated Carroll.

'Fitch continues to maintain a Stable Outlook on the assets and ratings of most New Zealand RMBS transactions and these criteria will continue to enhance the robustness of Fitch's New Zealand RMBS ratings,' said Natasha Vojvodic, Head of Australian and New Zealand Structured Finance.

All New Zealand RMBS transactions have been reviewed. The new criteria have no impact on existing ratings due to factors such as structural build-up of credit enhancement over time and sound asset performance in most transactions.

The APAC Residential Mortgage Criteria Addendum - New Zealand is available on www.fitchratings.com or by clicking on the link above. It should be read in conjunction with the APAC Residential Mortgage Criteria, dated 3 August 2012.

Keywords: MARKETS RATINGS NEWZEALANDRMBS

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