Moody's assigns definitive ratings to Granite Master Issuer plc Series 2007-1 notes
Approximately GBP 6.11 Billion of Debt Securities Affected
London, 25 January 2007 -- Moody's Investors Service has assigned definitive credit ratings to the
following classes of Notes issued by Granite Master Issuer plc:
- Aaa to the USD 1,350,000,000 Series 2007-1
Class 1A1 Notes due 2030;
- Aaa to the GBP 450,000,000 Series 2007-1 Class
1A3 Notes due 2030;
- Aaa to the USD 1,450,000,000 Series 2007-1
Class 2A1 Notes due 2054;
- Aaa to the USD 1,500,000,000 Series 2007-1
Class 3A1 Notes due 2054;
- Aaa to the EUR 1,650,000,000 Series 2007-1
Class 3A2 Notes due 2054;
- Aaa to the USD 1,000,000,000 Series 2007-1
Class 4A1 Notes due 2054;
- Aaa to the GBP 650,000,000 Series 2007-1 Class
5A1 Notes due 2054;
- Aaa to the GBP 500,000,000 Series 2007-1 Class
6A1 Notes due 2054;
- Aa3 to the USD 84,000,000 Series 2007-1 Class
1B1 Notes due 2054;
- Aa3 to the USD 80,000,000 Series 2007-1 Class
2B1 Notes due 2054;
- Aa3 to the EUR 167,000,000 Series 2007-1 Class
3B1 Notes due 2054;
- Aa3 to the GBP 25,000,000 Series 2007-1 Class
3B2 Notes due 2054;
- A2 to the USD 84,000,000 Series 2007-1 Class
1M1 Notes due 2054;
- A2 to the USD 80,000,000 Series 2007-1 Class
2M1 Notes due 2054;
- A2 to the EUR 131,000,000 Series 2007-1 Class
3M1 Notes due 2054;
- A2 to the GBP 40,000,000 Series 2007-1 Class
3M2 Notes due 2054;
- Baa2 to the USD 94,600,000 Series 2007-1 Class
1C1 Notes due 2054;
- Baa2 to the USD 30,000,000 Series 2007-1 Class
2C1 Notes due 2054;
- Baa2 to the EUR 30,000,000 Series 2007-1 Class
2C2 Notes due 2054;
- Baa2 to the EUR 265,000,000 Series 2007-1
Class 3C1 Notes due 2054;
- Baa2 to the GBP 36,000,000 Series 2007-1 Class
3C2 Notes due 2054;
Moody's also affirms the existing ratings of Granite Mortgages 01-1
plc, Granite Mortgages 01-2 plc, Granite Mortgages
02-1 plc, Granite Mortgages 02-2 plc, Granite
Mortgages 03-1 plc, Granite Mortgages 03-2 plc,
Granite Mortgages 03-3 plc, Granite Mortgages 04-1
plc, Granite Mortgages 04-2 plc, Granite Mortgages
04-3 plc and series 2005-1, series 2005-2,
series 2005-3, series 2005-4, series 2006-1,
series 2006-2, and series 2006-3 of Granite Master
Issuer plc.
Moody's previously assigned provisional ratings on 4th January 2007 to
the Granite Master Issuer plc Series 2007-1 Notes.
The long term ratings address the expected loss posed to investors by
the legal final maturity of the Notes. In Moody's opinion,
the structure allows for timely payment of interest and ultimate payment
of principal at par on or before the rated final legal maturity date.
Moody's ratings address only the credit risks associated with the transaction.
Other non-credit risks have not been addressed, but may have
a significant effect on yield to investors.
The Notes are backed by a pool of prime UK residential mortgages originated
by Northern Rock PLC ("Northern Rock"). This is the twenty-second
issue by Northern Rock via the Granite programme, and the nineteenth
issuance from the Granite Finance master-trust structure.
At the same time, it is the ninth issuance from Granite Master Issuer
plc after the restructuring of the Granite master-trust structure
and the implementation of Funding 2 and the de-linked issuance
structure. The structure employed also has an element of payment
rate risk as the final maturities of the 1A1 and 1A3 Notes are prior to
the legal final maturities of the mortgages. Moody's considers
this payment rate risk consistent with the ratings assigned given the
initial and minimum trust sizes and the actual composition of the trust.
The collateral pool consists of loans originally securitised in Granite
01-1 PLC, Granite 01-2 PLC, Granite 02-1
PLC, Granite 02-2 PLC, Granite 03-1 PLC,
Granite 03-2 PLC, Granite 03-3 PLC, Granite
04-1 PLC, Granite 04-2 PLC, Granite 04-3
PLC, and series 2005-1, series 2005-2,
series 2005-3, series 2005-4, series 2006-1,
series 2006-2, series 2006-3 and series 2006-4
of Granite Master Issuer PLC with approximately GBP 49.6 billion
of collateral at closing. The pool remains of high credit quality:
none of the additional loans have been more than 1 month in arrears in
the past 12 months, the weighted average current LTV of the provisional
pool is 77.79 per cent, the weighted average current seasoning
of loans in the provisional pool is c. 24.77 months,
and the originator is rated A1/Prime-1.
For a copy of Moody's New Issue Report and Master Trust Report regarding
this transaction, please contact Moody's London Client Service Desk
at +44-(0)20 7772 5454 or access Moody's website www.moodys.com.
London
Neal Shah
Managing Director
Structured Finance Group
Moody's Investors Service Ltd.
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454
Milan
Pier Paolo Vaschetti
Associate Analyst
Structured Finance Group
Moody's Investors Service
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454