Please Note
We brought you to this page based on your search query. If this isn't what you are looking for, you can continue to Search Results for ""
The maximum number of items you can export is 3,000. Please reduce your list by using the filtering tool to the left.
Close
Está por salir del sitio local de España y comenzará a navegar en el sitio global. ¿Desea continuar?
No mostrar este mensaje nuevamente
Si
No
Close
Email Research
Recipient email addresses will not be used in mailing lists or redistributed.
Recipient's
Email

Use semicolon to separate each address, limit to 20 addresses.
Enter the
characters you see
Close
Email Research
Thank you for your interest in sharing Moody's Research. You have reached the daily limit of Research email sharings.
Close
Thank you!
You have successfully sent the research.
Please note: some research requires a paid subscription in order to access.
Already a customer?
LOG IN
Don't want to see this again?
REGISTER
OR
Accept our Terms of Use to continue to Moodys.com:
​​

PLEASE READ AND SCROLL DOWN!

By clicking “I AGREE” [at the end of this document], you indicate that you understand and intend these terms and conditions to be the legal equivalent of a signed, written contract and equally binding, and that you accept such terms and conditions as a condition of viewing any and all Moody’s inform​ation that becomes accessible to you [after clicking “I AGREE”] (the “Information”).   References herein to “Moody’s” include Moody’s Corporation, Inc. and each of its subsidiaries and affiliates.

Terms of One-Time Website Use

1.            Unless you have entered into an express written contract with Moody’s to the contrary, you agree that you have no right to use the Information in a commercial or public setting and no right to copy it, save it, print it, sell it, or publish or distribute any portion of it in any form.               

2.            You acknowledge and agree that Moody’s credit ratings: (i) are current opinions of the future relative creditworthiness of securities and address no other risk; and (ii) are not statements of current or historical fact or recommendations to purchase, hold or sell particular securities.  Moody’s credit ratings and publications are not intended for retail investors, and it would be reckless and inappropriate for retail investors to use Moody’s credit ratings and publications when making an investment decision.  No warranty, express or implied, as the accuracy, timeliness, completeness, merchantability or fitness for any particular purpose of any Moody’s credit rating is given or made by Moody’s in any form whatsoever.          

3.            To the extent permitted by law, Moody’s and its directors, officers, employees, representatives, licensors and suppliers disclaim liability for: (i) any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with use of the Information; and (ii) any direct or compensatory damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud or any other type of liability that by law cannot be excluded) on the part of Moody’s or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with use of the Information.

4.            You agree to read [and be bound by] the more detailed disclosures regarding Moody’s ratings and the limitations of Moody’s liability included in the Information.     

5.            You agree that any disputes relating to this agreement or your use of the Information, whether sounding in contract, tort, statute or otherwise, shall be governed by the laws of the State of New York and shall be subject to the exclusive jurisdiction of the courts of the State of New York located in the City and County of New York, Borough of Manhattan.​​​​

I AGREE
Rating Action:

Moody's downgrades ratings of notes issued by three transactions of the Newgate Series 2006

12 Oct 2009

Approximately GBP 361.7 million of debt securities affected.

London, 12 October 2009 -- Moody's Investors Service has today downgraded the ratings of 15 classes of notes and has confirmed the ratings of 4 classes of notes issued by Newgate Funding Plc. The 19 affected tranches, listed below, had been placed on review for possible downgrade on 26 June 2009 due to worse-than-expected collateral performance. Today's rating actions conclude the review and take into account the increased loss expectations for the three mortgage portfolios backing Newgate Funding Series 2006-1, Newgate Funding Series 2006-2 and Newgate Funding Series 2006-3 (together "the Affected Transactions").

Newgate Funding Series 2006-1closed in March 2006 and the current pool factor is approximately 32%. The assets supporting the notes are "near prime", sub-prime and non-conforming mortgage loans secured by residential properties located in England, Wales, Scotland and Northern Ireland, with approximately 56% of the outstanding portfolio represented by interest-only loans. The original weighted average LTV at closing was approximately 79% while the current weighted average indexed LTV has increased to approximately 84%. As a result of the house price depreciation after closing, approximately 20% of the outstanding portfolio is currently characterized by an indexed LTV higher than 100%.

The cumulative losses realized since closing in Newgate Funding Series 2006-1 amount to 1.30% of the original portfolio balance, with an average loss severity of 18%. The reserve fund, fully funded at closing, was first drawn in June 2008 and is currently 45% of the required reserve fund amount.

Newgate Funding Series 2006-2 closed in June 2006 and the current pool factor is approximately 49%. The assets supporting the notes are "near prime", sub-prime and non-conforming mortgage loans secured by residential properties located in England, Wales, Scotland and Northern Ireland, with approximately 55% of the outstanding portfolio represented by interest-only loans. The original weighted average LTV at closing was approximately equal to 80% while the current weighted average indexed LTV has increased to approximately 87%. As a result of the house price depreciation after closing, approximately 26% of the outstanding portfolio is currently characterized by an indexed LTV higher than 100%.

The cumulative losses realized since closing in Newgate Funding Series 2006-2 amount to 1.31% of the original portfolio balance, with an average loss severity of 19.5%. The reserve fund, fully funded at closing, was first drawn in July 2008 and is currently 7.7% of the required reserve fund amount.

Newgate Funding Series 2006-3 closed in November 2006 and the current pool factor is approximately 63%. The assets supporting the notes are "near prime", sub-prime and non-conforming mortgage loans secured by residential properties located in England, Wales, Scotland and Northern Ireland, with approximately 66% of the outstanding portfolio represented by interest-only loans. The original weighted average LTV at closing was approximately equal to 80% while the current weighted average indexed LTV has increased to approximately 94%. As a result of the house price depreciation after closing, approximately 44% of the outstanding portfolio is currently characterized by an indexed LTV higher than 100%.

The cumulative losses realized since closing in Newgate Funding Series 2006-3 amount to 1.31% of the original portfolio balance, with an average loss severity of 23%. The reserve fund, fully funded at closing, was first drawn in August 2008 and is currently 41% of the required reserve fund amount.

According to the latest investor reports, 90+ days delinquencies (including outstanding repossessions) have increased in the last quarter to 32.9% of the outstanding balance of the portfolio in Newgate Funding Series 2006-1, 31.2% in Newgate Funding Series 2006-2 and 32.9% in Newgate Funding Series 2006-3. These levels of 90+ arrears are partially overstated by the common practice of computing the number of months in arrears by dividing the arrears amount by the last monthly installment.

In the last quarter, the loans in arrears which have not made any payment have been approximately equal to 18.0% of the current portfolio balance in Newgate Funding Series 2006-1, 17.8% in Newgate Funding Series 2006-2 and 18.1% in Newgate Funding Series 2006-3. Over the same period of time, the borrowers in arrears who have paid at least their contractual monthly installment amount to 19.7% of the current portfolio balance in Newgate Funding Series 2006-1, 19.2% in Newgate Funding Series 2006-2 and 20.7% in Newgate Funding Series 2006-3. The ability of these delinquent borrowers to partially cure their arrears may be also linked to the current benign interest rate environment for the floating rate loans, which currently represent approximately 100% for Newgate Funding Series 2006-1 and 2006-2 and 81.7% of the current portfolio balance for Newgate Funding Series 2006-3. Moody's has taken into account that such payment ability could be put at risk in case the interest rate environment became less favorable in the future.

The Affected Transactions are exposed to unhedged basis risk between the interest received on the mortgage loans, ultimately linked to the BBR, and the 3-Month-GBP-Libor due on the notes. Additionally, in Newgate Funding Series 2006-3 the fixed-floating swap provides only a partial hedging as the 3-Month-GBP-Libor payable by the swap counterparty resets monthly whereas the 3-Month-GBP-Libor payable on the Notes resets quarterly. These unhedged basis risks had been previously sized by Moody's and have not been the driver of today's rating actions.

Moody's has assessed updated loan-by-loan information of the outstanding portfolio to determine the increase in credit support needed and the volatility of future losses. As a consequence, Moody's has revised its Milan Aaa CE for the Affected Transactions to 28% for Newgate Funding Series 2006-1 and 2006-2 (previously 26.4% and 23% respectively) and to 30% for Newgate Funding Series 2006-3 (previously 27%). In each of the Affected Transactions the Class A notes share the same PDL and their current available credit enhancement (excluding excess spread) equals approximately 41.8% in Newgate Funding Series 2006-1, 32.5% in Newgate Funding Series 2006-2 and 25.7% in Newgate Funding Series 2006-3. In Newgate 2006-3 the principal redemption within the Class A notes is fully sequential, hence these classes are expected to have significantly different average lives. In its cash flow analysis Moody's has taken into account the faster repayment of the Class A2 and Class A3 notes for Newgate Funding Series 2006-3 and this has led to the confirmation of the rating for Class A2.

Considering the current amount of realized losses, and completing a roll-rate and severity analysis for the non-defaulted portion of the portfolio, Moody's has also increased its total loss expectations to 4.0%, 5.75% and 7.0% of the original portfolio balance for Newgate Funding Series 2006-1, 2006-2 and 2006-3 respectively (vs. 2.25%, 2.75% and 3.50% previously assumed).

The loss expectation and the Milan Aaa CE are the two key parameters used by Moody's to calibrate the loss distribution curve, which is one of the inputs into our RMBS cash-flow model. Moody's has also factored into its analysis the negative sector outlook for UK non-conforming RMBS. The sector outlook reflects the following expectations of key macro-economic indicators: GDP to contract by 4.1% in 2009, followed by growth of 0.9% in 2010, unemployment to increase to 9.6% by 2010 from 7.8% today, house prices to decrease by over 30% from their peak in 2007 to a trough in 2010 and further increases in personal insolvencies. For more detailed information please refer to Moody's Economy.Com.

The classes of notes affected by today's rating actions are:

Newgate Funding Series 2006-1:

- Class A4, confirmed at Aaa; previously on 26 June 2009 Aaa and placed under review for possible downgrade;

- Class Ma confirmed at Aa1; previously on 26 June 2009 Aa1 and placed under review for possible downgrade;

- Class Mb confirmed at Aa1; previously on 26 June 2009 Aa1 and placed under review for possible downgrade;

- Class Ba confirmed at Aa3; previously on 26 June 2009 Aa3 and placed under review for possible downgrade;

- Class Bb confirmed at Aa3; previously on 26 June 2009 Aa3 and placed under review for possible downgrade;

- Class Ca downgraded to Baa3; previously on 26 June 2009 A3 and placed under review for possible downgrade;

- Class Cb downgraded to Baa3; previously on 26 June 2009 A3 and placed under review for possible downgrade;

- Class D downgraded to Caa1; previously on 26 June 2009 Ba3 and placed under review for possible downgrade; and

- Class E downgraded to Ca; previously on 26 June 2009 B3 and placed under review for possible downgrade.

Newgate Funding Series 2006-2:

- Class A3a, downgraded to Aa1; previously on 26 June 2009 Aaa and placed under review for possible downgrade;

- Class A3b, downgraded to Aa1; previously on 26 June 2009 Aaa and placed under review for possible downgrade;

- Class M downgraded to Aa2; previously on 26 June 2009 Aa1 and placed under review for possible downgrade;

- Class Ba downgraded to A3; previously on 26 June 2009 Aa3 and placed under review for possible downgrade;

- Class Bb downgraded to A3; previously on 26 June 2009 Aa3 and placed under review for possible downgrade;

- Class Ca downgraded to B1; previously on 26 June 2009 Baa2 and placed under review for possible downgrade;

- Class Cb downgraded to B1; previously on 26 June 2009 Baa2 and placed under review for possible downgrade;

- Class Da downgraded to Ca; previously on 26 June 2009 B3 and placed under review for possible downgrade;

- Class Db downgraded to Ca; previously on 26 June 2009 B3 and placed under review for possible downgrade; and

- Class E downgraded to C; previously on 26 June 2009 Caa2 and placed under review for possible downgrade;

Newgate Funding Series 2006-3:

- Class A2, confirmed at Aaa; previously on 26 June 2009 Aaa and placed under review for possible downgrade;

- Class A3a, downgraded to Aa1; previously on 26 June 2009 Aaa and placed under review for possible downgrade;

- Class A3b, downgraded to Aa1; previously on 26 June 2009 Aaa and placed under review for possible downgrade;

- Class Mb downgraded to Aa3; previously on 26 June 2009 Aa2 and placed under review for possible downgrade;

- Class Ba downgraded to Baa2; previously on 26 June 2009 A2 and placed under review for possible downgrade;

- Class Bb downgraded to Baa2; previously on 26 June 2009 A2 and placed under review for possible downgrade;

- Class Cb downgraded to B3; previously on 26 June 2009 Ba1 and placed under review for possible downgrade;

- Class Da downgraded to Ca; previously on 26 June 2009 B3 and placed under review for possible downgrade;

- Class Db downgraded to Ca; previously on 26 June 2009 B3 and placed under review for possible downgrade; and

- Class E downgraded to C; previously on 26 June 2009 Caa3 and placed under review for possible downgrade.

Moody's ratings address the expected loss posed to investors by the legal final maturity of the notes. Moody's ratings address only the credit risks associated with the transactions. Other non-credit risks have not been addressed, but may have a significant effect on yield to investors.

Moody's initially analysed and monitors these transactions using the rating methodology for EMEA RMBS as described in the Rating Methodology reports "Moody's Approach to Rating UK RMBS" published in April 2005, "Moody's Updated Methodology for Rating UK RMBS" published in November 2007 and "Revising Default/Loss Assumptions Over the Life of an ABS/RMBS Transaction" published in December 2008, as well as the Special Report "Interest Rate Risks in UK RMBS -- Moody's approach" published in October 2007. These reports can be found on www.moodys.com in the Rating Methodologies sub-directory under the Research & Ratings and Credit Index tabs. Other methodologies and factors that may have been considered in the process of rating this issuer can also be found in the Rating Methodologies sub-directory on Moody's website. In addition, Moody's publishes a weekly summary of structured finance credit, ratings and methodologies, available to all registered users of our website, at www.moodys.com/SFQuickCheck.

For further information, please visit our website www.moodys.com or contact Moody's Client Service Desk (+44 20) 7772 5454.

London
Barbara Rismondo
VP - Senior Credit Officer
Structured Finance Group
Moody's Investors Service Ltd.
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454

Johannesburg
Dion Bate
Asst Vice President - Analyst
Structured Finance Group
Moody's Investors Service South Africa (Pty) Ltd.
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454

Moody's downgrades ratings of notes issued by three transactions of the Newgate Series 2006
No Related Data.
© 2019 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors and affiliates (collectively, “MOODY’S”). All rights reserved.

CREDIT RATINGS ISSUED BY MOODY'S INVESTORS SERVICE, INC. AND ITS RATINGS AFFILIATES (“MIS”) ARE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MOODY’S PUBLICATIONS MAY INCLUDE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES. MOODY’S DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUAL FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT OR IMPAIRMENT. SEE MOODY’S RATING SYMBOLS AND DEFINITIONS PUBLICATION FOR INFORMATION ON THE TYPES OF CONTRACTUAL FINANCIAL OBLIGATIONS ADDRESSED BY MOODY’S RATINGS. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS AND MOODY’S OPINIONS INCLUDED IN MOODY’S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. MOODY’S PUBLICATIONS MAY ALSO INCLUDE QUANTITATIVE MODEL-BASED ESTIMATES OF CREDIT RISK AND RELATED OPINIONS OR COMMENTARY PUBLISHED BY MOODY’S ANALYTICS, INC. CREDIT RATINGS AND MOODY’S PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. NEITHER CREDIT RATINGS NOR MOODY’S PUBLICATIONS COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY’S ISSUES ITS CREDIT RATINGS AND PUBLISHES MOODY’S PUBLICATIONS WITH THE EXPECTATION AND UNDERSTANDING THAT EACH INVESTOR WILL, WITH DUE CARE, MAKE ITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FOR PURCHASE, HOLDING, OR SALE.

MOODY’S CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY’S CREDIT RATINGS OR MOODY’S PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER.

ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY’S PRIOR WRITTEN CONSENT.

CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT COULD RESULT IN THEM BEING CONSIDERED A BENCHMARK.

All information contained herein is obtained by MOODY’S from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as well as other factors, however, all information contained herein is provided “AS IS” without warranty of any kind. MOODY'S adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources MOODY'S considers to be reliable including, when appropriate, independent third-party sources. However, MOODY’S is not an auditor and cannot in every instance independently verify or validate information received in the rating process or in preparing the Moody’s publications.

To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability to any person or entity for any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with the information contained herein or the use of or inability to use any such information, even if MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers is advised in advance of the possibility of such losses or damages, including but not limited to: (a) any loss of present or prospective profits or (b) any loss or damage arising where the relevant financial instrument is not the subject of a particular credit rating assigned by MOODY’S.

To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability for any direct or compensatory losses or damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud, willful misconduct or any other type of liability that, for the avoidance of doubt, by law cannot be excluded) on the part of, or any contingency within or beyond the control of, MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with the information contained herein or the use of or inability to use any such information.

NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY CREDIT RATING OR OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY’S IN ANY FORM OR MANNER WHATSOEVER.

Moody’s Investors Service, Inc., a wholly-owned credit rating agency subsidiary of Moody’s Corporation (“MCO”), hereby discloses that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by Moody’s Investors Service, Inc. have, prior to assignment of any rating, agreed to pay to Moody’s Investors Service, Inc. for ratings opinions and services rendered by it fees ranging from $1,000 to approximately $2,700,000. MCO and MIS also maintain policies and procedures to address the independence of MIS’s ratings and rating processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold ratings from MIS and have also publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted annually at www.moodys.com under the heading “Investor Relations — Corporate Governance — Director and Shareholder Affiliation Policy.”

Additional terms for Australia only: Any publication into Australia of this document is pursuant to the Australian Financial Services License of MOODY’S affiliate, Moody’s Investors Service Pty Limited ABN 61 003 399 657AFSL 336969 and/or Moody’s Analytics Australia Pty Ltd ABN 94 105 136 972 AFSL 383569 (as applicable). This document is intended to be provided only to “wholesale clients” within the meaning of section 761G of the Corporations Act 2001. By continuing to access this document from within Australia, you represent to MOODY’S that you are, or are accessing the document as a representative of, a “wholesale client” and that neither you nor the entity you represent will directly or indirectly disseminate this document or its contents to “retail clients” within the meaning of section 761G of the Corporations Act 2001. MOODY’S credit rating is an opinion as to the creditworthiness of a debt obligation of the issuer, not on the equity securities of the issuer or any form of security that is available to retail investors.

Additional terms for Japan only: Moody's Japan K.K. (“MJKK”) is a wholly-owned credit rating agency subsidiary of Moody's Group Japan G.K., which is wholly-owned by Moody’s Overseas Holdings Inc., a wholly-owned subsidiary of MCO. Moody’s SF Japan K.K. (“MSFJ”) is a wholly-owned credit rating agency subsidiary of MJKK. MSFJ is not a Nationally Recognized Statistical Rating Organization (“NRSRO”). Therefore, credit ratings assigned by MSFJ are Non-NRSRO Credit Ratings. Non-NRSRO Credit Ratings are assigned by an entity that is not a NRSRO and, consequently, the rated obligation will not qualify for certain types of treatment under U.S. laws. MJKK and MSFJ are credit rating agencies registered with the Japan Financial Services Agency and their registration numbers are FSA Commissioner (Ratings) No. 2 and 3 respectively.

MJKK or MSFJ (as applicable) hereby disclose that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by MJKK or MSFJ (as applicable) have, prior to assignment of any rating, agreed to pay to MJKK or MSFJ (as applicable) for ratings opinions and services rendered by it fees ranging from JPY125,000 to approximately JPY250,000,000.

MJKK and MSFJ also maintain policies and procedures to address Japanese regulatory requirements.

​​​​​​