Fitch assigns Westpac bonds AAA

Fitch Ratings said it assigned Westpac Banking Corp.'s (AA-/stable/F1+) series 2014-C2 issue of €1 billion mortgage covered bonds a rating of AAA.

The outlook is stable.

The fixed-rate bond is due in March 2021 and benefits from a 12-month extendable maturity.

Fitch said the rating is based on Westpac's long-term issuer default rating of AA-, a discontinuity cap of 2 (high), and an asset percentage of 89%, which is lower than Fitch's breakeven asset percentage for an AAA rating of 89.5%, supporting an AA rating on a probability of default basis and an AAA rating after giving credit for recoveries.

The outlook on the bonds reflects the stable outlook on Westpac's issuer default rating.

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