(The following statement was released by the rating agency)SYDNEY, May 27 (Fitch) Fitch Ratings has assigned Commonwealth Bank of Australia's (CBA, AA-/Stable/F1+) Series 35 issue of AUD125m mortgage-covered bonds a rating of 'AAA'. The Outlook is Stable. The fixed-rate bond is due in May 2024 and benefits from a 12-month extendable maturity. KEY RATING DRIVERSThe rating is based on CBA's Long-Term Issuer Default Rating (IDR) of 'AA-', a Discontinuity Cap (D-Cap) of 2 (high), and an asset percentage (AP) of 89.5%, which is equivalent to Fitch's breakeven AP for a 'AAA' rating, supporting a 'AA' rating on a probability of default (PD) basis, and a 'AAA' rating after giving credit for recoveries. The Outlook on the covered bonds reflects the Stable Outlook on CBA's IDR. Maturity mismatches are significant, with the weighted-average residual life of the cover assets at 15.4 years, and the liabilities at 5.1 years. RATING SENSITIVITIESThe 'AAA' rating would be vulnerable to a downgrade if the issuer's Long-Term IDR were downgraded by two or more notches; the D-Cap fell by more than one category; or the programme's AP rose above the breakeven AP of 89.5%.Contacts:Primary AnalystClaire HeatonDirector +61 2 8256 0361Fitch Australia Pty Ltd., level 15, 77 King Street, Sydney NSW 2000Secondary AnalystJames LeungDirector+61 2 8256 0322Committee ChairpersonBen McCarthyManaging Director+61 2 8256 0388Media Relations: Leni Vu, Sydney, Tel: +61 2 8256 0325, Email: Leni.Vu@fitchratings.com.The source of information used to assess these ratings was Commonwealth Bank of Australia. The issuer has informed Fitch that not all relevant underlying information used in the analysis of the rated bonds is public.Additional information is available at 
  www.fitchratings.com.
  Applicable criteria, 'Covered Bonds Rating Criteria', dated 10 March 2014; 'Counterparty Criteria for Structured Finance and Covered Bonds', dated 14 May 2014; 'Counterparty Criteria for Structured Finance and Covered Bonds: Derivative Addendum', dated 14 May 2014 ; and 'APAC Residential Mortgage Criteria', dated 1 August 2013; 'APAC Residential Mortgage Criteria Addendum - Australia', dated 1 August 2013; 'Covered Bonds Rating Criteria - Mortgage Liquidity & Refinance Stress Addendum' dated 4 February 2014; 'Global Criteria for Lender's Mortgage Insurance in RMBS', dated 1 August 2013, are available at 
  www.fitchratings.com.
 Applicable Criteria and Related Research: Covered Bonds Rating Criteria
  http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=738975
 Counterparty Criteria for Structured Finance and Covered Bonds
  http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=744158
 Counterparty Criteria for Structured Finance and Covered Bonds: Derivative Addendum
  http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=744175
 APAC Residential Mortgage Criteria - Amended
  http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=709855
 APAC Residential Mortgage Criteria Addendum ?? Australia - Amended
  http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=710259
 Covered Bonds Rating Criteria - Mortgage Liquidity and Refinance Stress Addendum
  http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=709665
 Global Criteria for Lenders?? Mortgage Insurance in RMBS
  http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=709255
 Additional Disclosure Solicitation Status 
  http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=831714
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