Escolar Documentos
Profissional Documentos
Cultura Documentos
Prime RMBS/Australia
Q111 81 35,309 0.79 0.34 0.65 1.79 102 54,330 1.87 0.93 2.64 5.45 4.26 3.21 9.41 16.88 3.40 1.19 2.14 6.74
87 36,257 0.71 0.31 0.66 1.69 102 54,488 1.81 0.85 2.72 5.38 4.13 3.75 7.94 15.83 3.31 1.18 2.07 6.55
Related Research
Australian Mortgage Delinquency by Postcode 31 March 2011 (March 2011) 2011 Outlook: Australian Structured Finance (January 2011)
Analysts
James Zanesi +61 2 8256 0306 james.zanesi@fitchratings.com Natasha Vojvodic +61 2 8256 0350 natasha.vojvodic@fitchratings.com Kim Bui +61 2 8256 0340 kim.bui@fitchratings.com
Investor Relations
Vickie Brumwell +61 2 8256 0305 vickie.brumwell@fitchratings.com
www.fitchratings.com
21 September 2011
Structured Finance
Certain borrowers (eg low-doc, self-employed) remain under pressure when making mortgage payments. In Q211, 30+ days low-doc arrears decreased to 6.55%, down 19bp from 6.74% in Q111. However, current levels are still relatively high. Arrears for prime low-doc borrowers were at 5.38% in June 2011 (versus 5.45% in March 2011). Moreover, the 90+days arrears for prime low-doc borrowers are currently at 2.72%, which is a new record high: this suggests that prime low-doc borrowers are finding it difficult to cure their delinquency status. Non-conforming low-doc 30+ days delinquencies decreased to 15.83% in Q211, down 105bp from Q111. However, this decrease was mainly due to the settlement of loans in arrears by more than 90+days. Fitch Ratings continues to believe that more vulnerable borrowers are more likely to be affected by eventual monetary policy decisions. As was the case in Q111, low-doc prime pools are currently experiencing arrears more than three times that of the full-doc pools. However, the agency believes that although mortgage arrears are at a higher than historical level, the Australian prime RMBS market is stable overall. Delinquency levels remain low (especially compared with other countries) and within Fitchs expectations. The unemployment rate is still only 5.3% and the economy is strong, although an interest rate rise might offset any otherwise improving arrears figures. Recent declining house prices have been mainly limited to specific geographical areas (eg Brisbane and Perth). Softening house prices could impact future 90+ days delinquencies. Concerns persist over a potential housing bubble in Australia. The agency has conducted a stress-test analysis using different property-price declines (for more information, please refer to Australian RMBS Housing Stress Test, dated 24 January 2011). Fitchs analysis has shown the robust nature of Australian RMBS ratings, even in the face of a simulated severe downturn.
Index Methodology
No transaction was removed from the Index during Q211. Five new transactions have been added since the last Dinkum report (Pinnacle Series Trust 2010-T1, WB Trust 2010-1, Series 2010-2 Swan Trust, Resimac Premier Series 2010-2, and Light Trust No. 3). The size of the portfolio on which the prime index is based increased to AUD36.2bn in Q211, from AUD35.3bn in Q111. The addition of these five transactions has partially contributed to the decrease in arrears in the Prime Dinkum Index, as their average 30+ days arrears level is much lower than the Dinkum level (0.25%). There were 102 transactions in the Dinkum Low-Doc Index as at Q211. The outstanding amount of prime and non-conforming collateral, where low-doc loans make up all or part of the pool, has increased slightly to AUD54.5bn, from AUD54.3bn in Q111. The amount of low-doc collateral in these transactions fell over the same period to AUD6.7bn from AUD7.1bn, although this did not drive the change in arrears. Effective 1 January 2008, the Australian Prudential Regulatory Authority (APRA) limited the circumstances in which an Australian deposit-taking institution (ADI) could make date-based calls to repurchase exposures from a securitisation. Clean-up calls are only allowed when the outstanding collateral amount has amortised to 10% or less of that at closing. As a result, a number of ADI transactions have gone beyond their date-based calls and have eventually been called when the outstanding amount has amortised to below 10%.
Related Criteria
Global Structured Finance Rating Criteria (August 2011) APAC Residential Mortgage Criteria (August 2011) APAC Residential Mortgage Criteria Addendum - Australia (August 2011) Counterparty Criteria for Structured Finance Transactions (March 2011) Counterparty Criteria for Structured Finance Transactions Derivative Addendum (March 2011) Criteria for Special-Purpose Vehicles in Structured Finance Transactions (June 2011) Global Criteria for Lenders Mortgage Insurance in RMBS (August 2011)
Interest Rates
Fitchs Dinkum 30+ Days Index shows arrears slightly decreasing in Q211. The decision by the Reserve Bank of Australia (RBA) to leave the current level of cash rates at 4.75% over the last nine months has contributed to the stabilisation of arrears through Q211. Stable interest rates have provided financial relief to households and Australian borrowers have proven able to
Structured Finance
absorb interest-rate rises in the past; however, the recent level of high mortgage rates has been reducing borrower serviceability. As stated in the last Dinkum Index report (The Dinkum Index Q111), Fitch expected most borrowers who were in arrears to reduce their spending and cure their missed payments in the medium to long term. As interest rates have remained stable, this stabilisation of arrears is expected to continue into Q311. In the long term, the RBA states it will continue to assess carefully the evolving outlook for growth and inflation. Depending on the extent of any further increases in interest rates and the increasing cost of living, some borrowers may not be able to afford increasing expenditure. Australia is currently experiencing a slight increase in living costs. The Consumer Price Index (CPI) provided by the Australian Bureau of Statistics (ABS) shows an average 3.7% year-onyear (yoy) increase in consumer prices. In particular, the Queensland floods and cyclone Yasi contributed strongly to increased fruit and vegetable prices. Over the last year, the actual costs for households have actually increased beyond the CPI level, as the CPI does not include, eg interest paid on mortgages. The Analytical Living Cost Index (ALCI) includes changes in the amount of interest paid on mortgages (measured as part of financial and insurance services) and other costs, eg maintenance costs and council rates for owner-occupied housing. As such, the ALCI paints a gloomier picture, with increasing costs for salaried employee households of 4.5% yoy. However, in Q211, the ALCI reported costs increasing by 0.9% (versus the 1.0% CPI increase), mainly thanks to the stabilisation of interest rates. Fitch continues to believe that the increasing cost of living, together with potentially higher levels of mortgage rates, is a major threat to the performance of the mortgage market in the long term. Fitch anticipated the recent stabilisation in arrears, and expects this to continue through Q311.
Macroeconomic Outlook
Fitchs macroeconomic outlook has not changed considerably since December 2010. At current interest rates, any negative long-term impact is unlikely, as borrowers are currently paying less than pre-2008 levels. An adjustment in arrears is expected in the long term, although this may depend on monetary policy over the rest of 2011 and 2012. While Australias economy continues to expand, thanks in part to the strong growth experienced by the Asian region, there is growing concern that the economic relationship with certain Asian markets (eg China) may not provide a healthy long-term equilibrium. According to the ABS, Australias unemployment rate increased to 5.3% in August 2011, from 4.9% in April 2011. While unemployment remains above the 2005-08 average, it is still lower than a year ago and it has remained stable in the 5% area. Fitch believes the current unemployment rate is not a concern for arrears in 2011.
House Prices
According to preliminary estimates from the ABS, house prices in the eight state capital cities fell in Q211, with a quarter-on-quarter (qoq) decrease of 0.1% in March 2011 and a yoy decrease of 1.9%. Perth and Brisbane have recorded a yoy decrease of 4.1% and 3.6%, respectively. The RPData - Rismark Home Value Index also suggests a similar trend in the housing market, with seasonally-adjusted Q211 house prices decreasing 0.9% qoq (and decreasing 2.0% yoy). A drop in house prices could negatively affect transactions, both in terms of recovery rate and recovery time. As house prices drop, the eventual sale price is more likely to be below the mortgage balance, leading to more losses and eventual LMI claims. This obviously depends on
Structured Finance
the price at which the property was first purchased. Less seasoned mortgages tend to have amortised less and therefore tend to experience a more modest house price appreciation, in turn being more likely to generate a loss. Moreover, in a downturn, oversupply is likely to extend recovery times as it becomes harder to sell properties. If properties are not easily sold, and more borrowers migrate from 30-59 days into a longer period of arrears, 90+ days delinquencies tend to increase. Fitch notes concerns over a potential housing bubble in Australia. The agency has conducted a stress-test analysis using different property-price declines (for more information please refer to Australian RMBS Housing Stress Test, dated 24 January 2011). Fitchs analysis has shown the robust nature of Australian RMBS ratings, even in the face of a simulated severe downturn.
Jun 01
Jun 02
Jun 03
Jun 04
Jun 05
Jun 06
Jun 07
Jun 08
Jun 09
Jun 10
Jun 11
Source: Fitch
In Q311, Fitch expects 30+ days arrears to continue stabilising, due to 30-59 days and 60-89
Structured Finance
days arrears being partly cured and the absence of negative events affecting households.
Structured Finance
Figure 6
Low-Doc Delinquencies
In Q211, 30+ days low-doc arrears decreased to 6.55%, down 19bp from 6.74% in Q111, however, current levels are still relatively high. 90+ days arrears remained at 3.31% (versus 3.40% in Q111). Low-doc arrears began to fall at the beginning of 2009 but started to rise again in Q110. The increasing 90+ days arrears suggest that a stabilisation is unlikely in the near term. Fitch has separated reduced-documentation (low-doc) conforming mortgage delinquencies from low-doc non-conforming mortgage delinquencies. Non-conforming low-doc mortgages currently represent just 11.2% of all low-doc loans securitised in Australia (versus 11.3% in Q111). As mentioned in previous reports, the decreasing portion of non-conforming loans in the low-doc market is a trend which is likely to continue, at least in the short to medium term. Non-conforming low-doc loans which typically have significantly higher loan-to-value ratios (LVRs) usually have delinquency levels at around three times that of conforming low-doc loans. However, as performance in the overall market deteriorates, the divergence between conforming and non-conforming loans increases. Currently, non-conforming low-doc pools are experiencing 2.9 times the level of 30+ days arrears of conforming low-doc pools.
Figure 7
Non-conforming low-doc 30+ days delinquencies decreased to 15.83% in Q211, down 105bp from Q111. The decrease in non-conforming low-doc arrears in Q211 was due to a reduction in 90+ days arrears, which was driven mainly by severe delinquencies becoming defaulted loans in Q211.
Structured Finance
Figure 8
Since Q210, Fitch has anticipated that low-doc conforming loans would experience considerable deterioration and prime low-doc borrowers are now doing so. Arrears for these borrowers continue to be high at 5.38% in June 2011 (versus 5.45%in March 2011). Moreover, 90+ days arrears are currently at 2.72%, which is a record high. The increase in 90+ days arrears suggests that prime low-doc borrowers are struggling to cure their delinquency status. As was the case in Q111, the low-doc prime pool is currently experiencing arrears more than three times that of the full-doc pool. The ratio is at its highest since December 2006 (when the Index was created) and indicates that the increase in interest payments over the past two years has particularly affected self-employed borrowers who have self-certified their income. As low-doc borrowers adjust to the November 2010 cash-rate increase, Christmas spending and the Queensland floods, a return to delinquency rates in line with historical levels is likely in the next few quarters. However, Fitch continues to believe that low-doc borrowers are likely to take longer to cure their delinquency status. If low-doc households are not affected by further financial pressures in terms of cost of living or interest rate rises delinquencies may begin to fall over the next two quarters.
Figure 9
Structured Finance
Adjustment (QA). The QA takes into account that even in benign economic environments, the LMI does not cover all losses accruing to insured loans, irrespective of the insurer's capacity to pay. Fitch-rated prime RMBS transactions experienced only 16 new claims during Q211, totalling approximately AUD1.2m (versus AUD3.0m in Q111), a 60% decrease in cumulative claims over the past six months. The Fitch Dinkum LMI Index (the Dinkum LMI) shows the loss rate for prime/conforming transactions. Since the beginning of 2010, LMI claims have been stable, with the average cumulative LMI claim in June 2011 being AUD79,564. House price appreciation over the last couple of years has helped boost recoveries on those properties that proceeded to default. Despite increasing inflation, the average LMI claim has stabilised at between AUD75,000 and AUD80,000 during the past 24 months. The recent decrease in house prices over Q211 has not substantially affected average LMI claims. However, in the event of a further fall in house prices, Fitch would expect the average LMI claim to increase.
Figure 10
In Q211 the number of claims per quarter stabilised. Losses tended to be limited or in some cases zero especially for well-seasoned mortgages. Stagnation in the housing market sometimes due to events in particular geographical areas (eg Queensland floods) may lead to a decrease in property sales and to a rise in 90+ days arrears. For a claim on LMI to materialise, the loan must first default and then, upon foreclosure, proceeds must be insufficient to repay the loan. Fitchs analysis for Australian RMBS transactions takes into account the possibility of a sharp market value decline and considers current and near-term performance projections to be well within the modelled scenarios.
Structured Finance
conforming sectors. LMI claims are the amounts claimed by servicers from LMI providers as a result of principal shortfalls on loans where the contracts have been terminated and the underlying collateral liquidated.
Structured Finance
Appendix
Figure 11
10
Structured Finance
Individual Transaction Data (Cont.)
Issue name Illawarra Series 2010-1 Trust Interstar Millennium Series 2004-5 Trust Interstar Millennium Series 2005-2L Trust Interstar Millennium Series 2005-3E Trust Interstar Millennium Series 2006-1 Trust Interstar Millennium Series 2006-2G Trust Interstar Millennium Series 2006-3L Trust Interstar Millennium Series 2006-4H Trust Kingfisher Trust 2004-1G Liberty PRIME Series 2009-1 Liberty PRIME Series 2009-2 Liberty PRIME Series 2010-1 Light Trust No. 2 Light Trust No. 3 Maxis Loans Securitisation Fund 2008-1 Maxis Loans Securitisation Fund 2009-1 Medallion Trust Series 2006-1G Medallion Trust Series 2007-1G Nautilus Trust No. 1 Series 2007-1 Nautilus Trust No. 1 Series 2008-1 Pinnacle Series Trust 2010-T1 Progress 2010-1 Trust PUMA Masterfund P-15 PUMA Masterfund S-6 PUMA Masterfund S-7 Resimac Premier Series 2008-1 Resimac Premier Series 2009-1 Resimac Premier Series 2009-2 Resimac Premier Series 2010-1 Resimac Premier Series 2010-2 Resimac Tromphe Trust - Series 2011-1 Series 2004-1 REDS Trust Series 2004-1 Torrens Trust Series 2004-2 (W) Torrens Trust Initial housing pool 297,900,000.00 742,152,613.00 1,373,209,818.00 2,041,228,813.00 979,190,101.00 1,389,098,848.00 999,281,085.00 396,740,866.00 1,481,226,046.66 591,033,348.00 123,443,832.00 196,009,861.00 263,200,000.00 529,668,174.00 470,000,000.00 276,000,000.00 5,464,095,487.00 7,070,031,216.00 253,014,278.00 253,014,278.00 267,770,177.00 1,000,000,000.00 314,999,745.00 294,886,799.08 689,669,263.00 609,007,766.00 550,104,531.00 289,847,791.00 249,318,807.00 399,516,268.00 3,000,000,000.00 465,387,559.00 800,000,000.00 1,000,000,000.00 (AUD) Current housing pool 235,403,738.37 133,268,916.00 309,159,350.00 564,656,952.00 264,505,874.00 519,461,512.00 551,500,847.00 243,294,599.00 173,366,992.00 288,604,903.83 79,296,266.65 162,561,397.93 129,598,939.40 432,535,464.97 168,342,199.00 151,670,484.00 1,347,196,585.99 2,493,883,962.37 79,538,991.00 79,641,217.00 232,201,213.00 726,664,634.28 147,548,352.21 117,624,675.21 259,461,524.69 319,023,764.75 347,370,833.28 210,932,166.26 196,601,732.00 365,272,638.93 763,615,787.68 51,586,089.00 136,138,311.33 155,987,456.78 30-59 days 0.14 0.54 1.61 0.73 1.10 1.08 1.39 0.73 0.41 0.76 1.47 0.96 0.29 0.09 0.71 1.66 0.51 0.51 2.30 1.97 0.41 0.54 0.28 0.41 1.35 0.52 0.12 0.31 0.36 2.51 1.63 1.82 (%) 60-89 days 0.14 0.24 1.05 0.43 0.93 0.53 0.54 0.19 0.12 0.40 0.82 0.87 0.96 0.89 0.16 0.33 0.60 0.39 1.37 0.38 0.17 0.16 0.37 0.80 90+ days 0.06 2.86 2.25 1.21 1.59 0.60 1.67 1.51 0.08 2.00 1.03 0.92 0.06 1.36 2.89 0.78 0.69 0.40 0.62 0.43 0.21 0.39 1.56 3.24 0.28 0.28 0.44 0.35 0.16 1.93 3.34 Total 30+ Total 30+ AUD amount No. claims 0.34 800,372.71 0 3.64 4,850,988.54 59 4.91 15,179,724.09 85 2.37 13,382,369.76 166 3.62 9,575,112.64 34 2.21 11,480,099.42 83 3.60 19,854,030.49 40 2.43 5,912,058.76 66 0.61 1,057,538.65 0 3.16 9,119,914.96 0 3.32 2,632,636.05 0 2.75 4,470,438.44 0 0.29 375,836.92 0 0.15 648,803.20 0 3.03 5,100,768.63 1 5.44 8,250,874.33 0 1.45 19,534,350.50 16 1.53 38,156,424.62 11 3.30 2,624,786.70 6 2.59 2,062,707.52 9 0.84 1,950,490.00 0 1.14 8,283,976.83 0 0.67 995,176.00 0 1.97 2,312,183.00 2 5.96 15,453,042.00 8 0.90 2,871,213.88 4 0.40 1,389,483.33 0 0.28 590,610.07 1 0.75 1,474,512.99 0 0.17 620,963.49 1 0.87 6,643,457.35 2 2.67 1,377,348.58 5 3.93 5,350,235.64 3 5.96 9,296,852.42 9 Claims ratio (%) 0.53 0.53 0.70 0.28 0.50 0.42 1.36 0.10 0.02 0.01 0.13 0.24 0.04 0.08 0.00 0.00 0.00 0.00 0.09 0.02 0.10
11
Structured Finance
Individual Transaction Data (Cont.)
Issue name Series 2005-1 Torrens Trust Series 2005-2(S) Torrens Trust Series 2005-3(E) Torrens Trust Series 2006-1(E) Torrens Trust Series 2010-1 Harvey Trust Series 2010-1 Swan Trust Series 2010-2 Swan Trust SMHL Global Fund 2007-1 SMHL Global Fund No. 8 SMHL Securisation Fund 2010-1 SMHL Securisation Fund 2010-2E SMHL Securisation Fund 2010-3 SMHL Securitisation Fund 2008-1 SMHL Securitisation Fund 2008-2 SMHL Securitisation Fund 2009-1 SMHL Securitisation Fund 2009-2 SMHL Securitisation Fund 2009-3 WB Trust 2009-1 WB Trust 2010-1
Source: Fitch
Initial housing pool 994,259,355.00 750,000,000.00 1,998,869,313.00 1,500,000,000.00 650,000,000.00 619,936,612.00 999,998,893.00 3,200,000,001.00 2,499,999,981.00 673,000,000.00 1,200,027,462.00 999,999,750.00 300,000,000.00 599,999,994.00 713,994,537.00 1,255,300,000.00 783,700,000.00 424,011,572.00 252,908,908.00
(AUD) Current housing pool 271,463,719.74 91,212,652.48 330,037,225.00 398,800,811.67 489,222,665.90 437,960,101.00 862,280,732.19 981,074,224.39 429,064,272.00 447,546,060.00 895,566,876.00 881,667,576.00 134,753,628.00 331,951,022.00 367,965,219.00 814,427,604.00 467,650,086.00 288,657,374.47 213,975,793.00
30-59 days 0.73 1.80 0.72 0.79 0.90 0.06 0.57 0.57 0.63 0.32 0.31 0.40 0.74 0.87 0.14 0.43 0.67 0.27
(%) 60-89 days 0.06 1.09 0.50 0.45 0.06 0.42 0.03 0.19 0.27 0.07 0.23 0.34 0.31 0.21 0.16 0.18 0.49 -
90+ days 1.51 6.22 1.69 1.19 0.06 0.84 0.08 0.30 0.42 0.04 0.12 0.01 0.17 0.18 0.28 0.21 0.19 0.53 -
Total 30+ Total 30+ AUD amount No. claims 2.30 6,243,665.55 5 9.11 8,309,472.64 6 2.91 9,604,083.25 12 2.43 9,690,859.72 7 0.12 590,980.98 0 2.16 9,459,938.18 0 0.17 1,465,877.24 0 1.06 10,399,386.78 5 1.26 5,406,209.83 6 0.74 3,311,840.84 0 0.67 6,000,298.07 0 0.32 2,821,336.24 0 0.91 1,226,258.01 0 1.23 4,082,997.57 0 1.36 5,004,326.98 1 0.51 4,153,580.78 0 0.80 3,741,200.69 0 1.69 4,878,309.63 0 0.27 577,734.64 0
Claims ratio (%) 0.03 0.09 0.07 0.02 0.01 0.01 0.01 -
12
Structured Finance
ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S FREE WEB SITE AT 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.
Copyright 2011 by Fitch, Inc., Fitch Ratings Ltd. and its subsidiaries. One State Street Plaza, NY, NY 10004.Telephone: 1-800-753-4824, (212) 908-0500. Fax: (212) 480-4435. 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. Reproduction or retransmission in whole or in part is prohibited except by permission. All rights reserved. In issuing and maintaining its ratings, Fitch relies on factual information it receives from issuers and underwriters and from other sources Fitch believes to be credible. Fitch conducts a reasonable investigation of the factual information relied upon by it in accordance with its ratings methodology, and obtains reasonable verification of that information from independent sources, to the extent such sources are available for a given security or in a given jurisdiction. The manner of Fitch's factual investigation and the scope of the third-party verification it obtains will vary depending on the nature of the rated security and its issuer, the requirements and practices in the jurisdiction in which the rated security is offered and sold and/or the issuer is located, the availability and nature of relevant public information, access to the management of the issuer and its advisers, the availability of pre-existing third-party verifications such as audit reports, agreedupon procedures letters, appraisals, actuarial reports, engineering reports, legal opinions and other reports provided by third parties, the availability of independent and competent third-party verification sources with respect to the particular security or in the particular jurisdiction of the issuer, and a variety of other factors. Users of Fitch's ratings should understand that neither an enhanced factual investigation nor any third-party verification can ensure that all of the information Fitch relies on in connection with a rating will be accurate and complete. Ultimately, the issuer and its advisers are responsible for the accuracy of the information they provide to Fitch and to the market in offering documents and other reports. In issuing its ratings Fitch must rely on the work of experts, including independent auditors with respect to financial statements and attorneys with respect to legal and tax matters. Further, ratings are inherently forward-looking and embody assumptions and predictions about future events that by their nature cannot be verified as facts. As a result, despite any verification of current facts, ratings can be affected by future events or conditions that were not anticipated at the time a rating was issued or affirmed. The information in this report is provided "as is" without any representation or warranty of any kind. A Fitch rating is an opinion as to the creditworthiness of a security. This opinion is based on established criteria and methodologies that Fitch is continuously evaluating and updating. Therefore, ratings are the collective work product of Fitch and no individual, or group of individuals, is solely responsible for a rating. The rating does not address the risk of loss due to risks other than credit risk, unless such risk is specifically mentioned. Fitch is not engaged in the offer or sale of any security. All Fitch reports have shared authorship. Individuals identified in a Fitch report were involved in, but are not solely responsible for, the opinions stated therein. The individuals are named for contact purposes only. A report providing a Fitch rating is neither a prospectus nor a substitute for the information assembled, verified and presented to investors by the issuer and its agents in connection with the sale of the securities. Ratings may be changed or withdrawn at anytime for any reason in the sole discretion of Fitch. Fitch does not provide investment advice of any sort. Ratings are not a recommendation to buy, sell, or hold any security. Ratings do not comment on the adequacy of market price, the suitability of any security for a particular investor, or the tax-exempt nature or taxability of payments made in respect to any security. Fitch receives fees from issuers, insurers, guarantors, other obligors, and underwriters for rating securities. Such fees generally vary from US$1,000 to US$750,000 (or the applicable currency equivalent) per issue. In certain cases, Fitch will rate all or a number of issues issued by a particular issuer, or insured or guaranteed by a particular insurer or guarantor, for a single annual fee. Such fees are expected to vary from US$10,000 to US$1,500,000 (or the applicable currency equivalent). The assignment, publication, or dissemination of a rating by Fitch shall not constitute a consent by Fitch to use its name as an expert in connection with any registration statement filed under the United States securities laws, the Financial Services and Markets Act of 2000 of Great Britain, or the securities laws of any particular jurisdiction. Due to the relative efficiency of electronic publishing and distribution, Fitch research may be available to electronic subscribers up to three days earlier than to print subscribers.
13