Moodys.com
Close
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
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 takes action in 3 UK non-conforming residential mortgage-backed securities

27 Apr 2015

London, 27 April 2015 -- Moody's Investors Service has today upgraded the ratings of 17 notes and affirmed the ratings of 10 notes in 3 UK non-conforming residential mortgage-backed securities (RMBS) transactions: Preferred Residential Securities 05-2 PLC, Preferred Residential Securities 06-1 PLC and Preferred Residential Securities 8 PLC.

Today's rating action concludes the review of 14 notes placed on review on 9 December 2014.

Please refer to the end of the Ratings Rationale section for a list of affected ratings.

RATINGS RATIONALE

Today's rating upgrades reflect the deleveraging of the transactions and today's rating affirmations reflect the sufficiency of credit enhancement.

KEY COLLATERAL ASSUMPTIONS

Moody's key collateral assumptions remain unchanged for the three transactions. The performance of the underlying asset portfolios remain in line with Moody's assumptions.

Moody's quantitative analysis incorporates the ratings' sensitivity to increases in key collateral assumptions. The increases included stress of 1.25x the current EL assumption and 1.2x MILAN CE. Moody's sensitivity analysis would typically expect to see the ratings fall by no more than one to three notches using these stressed assumptions. The results of this analysis limited the potential upgrade of the ratings on the Class C1a and C1c in Preferred Residential Securities 05-2 PLC, Class C1a and C1c in Preferred Residential Securities 06-1 PLC and Class D1a, D1c and E in Preferred Residential Securities 8 PLC.

COUNTERPARTY RISK EXPOSURE AND UPDATES TO MOODY'S STRUCTURE FINANCE RATING METHODOLOGIES

The ratings of the Classes A2a, A2c, B1a and B1c in Preferred Residential Securities 05-2 PLC, Classes A2a, A2b, A2c, B1a, and B1c in Preferred Residential Securities 06-1 PLC and Classes A1a1, A1a2, A1b, A1c, B1a, B1c, C1a and C1c in Preferred Residential Securities 8 PLC are constrained by operational risk.

Acenden Limited (NR) acts as servicer and cash manager in the three transactions with Homeloan Management Limited (NR) acting as standby servicer. Moody's considers that the transactions are exposed to operational risk as Homeloan Management Limited may not be able to immediately take over the servicing in case of servicer disruption. The transactions benefit from a liquidity facility and reserve funds which partially offset concerns regarding the back-up servicing arrangement.

Moody's also assessed the default probability of the account bank provider of each transaction by referencing the bank's deposit rating.

Moody's incorporated the updates to its structured finance methodologies in its analysis of the transactions affected by today's rating actions (see "Moody's updates several structured finance rating methodologies in light of its new counterparty risk assessment for banks", published on 16 March 2015 - http://www.moodys.com/viewresearchdoc.aspx?docid=PR_320674).

Principal Methodology:

The principal methodology used in these ratings was "Moody's Approach to Rating RMBS Using the MILAN Framework" published in January 2015. Please see the Credit Policy page on www.moodys.com for a copy of this methodology.

Factors that would lead to an upgrade or downgrade of the ratings:

Factors or circumstances that could lead to an upgrade of the ratings include (1) performance of the underlying collateral that is better than Moody's expected, (2) deleveraging of the capital structure and (3) improvements in the credit quality of the transaction counterparties.

Factors or circumstances that could lead to a downgrade of the ratings include (1) performance of the underlying collateral that is worse than Moody's expects, (2) deterioration in the notes' available credit enhancement and (3) deterioration in the credit quality of the transaction counterparties.

List of Affected Ratings:

Issuer: Preferred Residential Securities 05-2 PLC

....EUR 100M Class A2a Notes, Affirmed Aa2 (sf); previously on Dec 21, 2009 Downgraded to Aa2 (sf)

....GBP 96M Class A2c Notes, Affirmed Aa2 (sf); previously on Dec 21, 2009 Downgraded to Aa2 (sf)

....EUR 13M Class B1a Notes, Upgraded to Aa2 (sf); previously on Dec 9, 2014 Aa3 (sf) Placed Under Review for Possible Upgrade

....GBP 10M Class B1c Notes, Upgraded to Aa2 (sf); previously on Dec 9, 2014 Aa3 (sf) Placed Under Review for Possible Upgrade

....EUR 12M Class C1a Notes, Upgraded to A1 (sf); previously on Dec 9, 2014 A3 (sf) Placed Under Review for Possible Upgrade

....GBP 4M Class C1c Notes, Upgraded to A1 (sf); previously on Dec 9, 2014 A3 (sf) Placed Under Review for Possible Upgrade

....GBP 12.6M Class D1c Notes, Affirmed Caa1 (sf); previously on Dec 21, 2009 Downgraded to Caa1 (sf)

Issuer: Preferred Residential Securities 06-1 PLC

....EUR 70M Class A2a Notes, Affirmed Aa2 (sf); previously on Dec 21, 2009 Downgraded to Aa2 (sf)

....USD 20M Class A2b Notes, Affirmed Aa2 (sf); previously on Dec 21, 2009 Downgraded to Aa2 (sf)

....GBP 167.1M Class A2c Notes, Affirmed Aa2 (sf); previously on Dec 21, 2009 Downgraded to Aa2 (sf)

....EUR 5.5M Class B1a Notes, Upgraded to Aa2 (sf); previously on Dec 9, 2014 Aa3 (sf) Placed Under Review for Possible Upgrade

....GBP 26M Class B1c Notes, Upgraded to Aa2 (sf); previously on Dec 9, 2014 Aa3 (sf) Placed Under Review for Possible Upgrade

....EUR 17M Class C1a Notes, Upgraded to Aa3 (sf); previously on Dec 9, 2014 Baa1 (sf) Placed Under Review for Possible Upgrade

....GBP 6.5M Class C1c Notes, Upgraded to Aa3 (sf); previously on Dec 9, 2014 Baa1 (sf) Placed Under Review for Possible Upgrade

....EUR 15.1M Class D1a Notes, Upgraded to Caa1 (sf); previously on Dec 9, 2014 Caa2 (sf) Placed Under Review for Possible Upgrade

....GBP 10M Class D1c Notes, Upgraded to Caa1 (sf); previously on Dec 9, 2014 Caa2 (sf) Placed Under Review for Possible Upgrade

Issuer: Preferred Residential Securities 8 PLC

....GBP 181M Class A1a1 Notes, Affirmed Aa2 (sf); previously on Mar 30, 2010 Downgraded to Aa2 (sf)

....GBP 100M Class A1a2 Notes, Affirmed Aa2 (sf); previously on Mar 30, 2010 Downgraded to Aa2 (sf)

....USD 100M Class A1b Notes, Affirmed Aa2 (sf); previously on Mar 30, 2010 Downgraded to Aa2 (sf)

....EUR 100M Class A1c Notes, Affirmed Aa2 (sf); previously on Mar 30, 2010 Downgraded to Aa2 (sf)

....GBP 18.5M Class B1a Notes, Upgraded to Aa2 (sf); previously on Dec 9, 2014 Aa3 (sf) Placed Under Review for Possible Upgrade

....EUR 8.5M Class B1c Notes, Upgraded to Aa2 (sf); previously on Dec 9, 2014 Aa3 (sf) Placed Under Review for Possible Upgrade

....GBP 5.9M Class C1a Notes, Upgraded to Aa2 (sf); previously on Dec 9, 2014 A2 (sf) Placed Under Review for Possible Upgrade

....EUR 5M Class C1c Notes, Upgraded to Aa2 (sf); previously on Dec 9, 2014 A2 (sf) Placed Under Review for Possible Upgrade

....GBP 16.2M Class D1a Notes, Upgraded to Baa1 (sf); previously on Mar 30, 2010 Downgraded to Baa3 (sf)

....EUR 5M Class D1c Notes, Upgraded to Baa1 (sf); previously on Mar 30, 2010 Downgraded to Baa3 (sf)

....GBP 4.6M Class E Notes, Upgraded to Ba1 (sf); previously on Mar 30, 2010 Downgraded to B1 (sf)

REGULATORY DISCLOSURES

For further specification of Moody's key rating assumptions and sensitivity analysis, see the sections Methodology Assumptions and Sensitivity to Assumptions of the disclosure form.

Moody's did not receive or take into account a third-party assessment on the due diligence performed regarding the underlying assets or financial instruments related to the monitoring of these transactions in the past six months.

The analysis relies on an assessment of collateral characteristics to determine the collateral loss distribution, that is, the function that correlates to an assumption about the likelihood of occurrence to each level of possible losses in the collateral. As a second step, Moody's evaluates each possible collateral loss scenario using a model that replicates the relevant structural features to derive payments and therefore the ultimate potential losses for each rated instrument. The loss a rated instrument incurs in each collateral loss scenario, weighted by assumptions about the likelihood of events in that scenario occurring, results in the expected loss of the rated instrument.

Moody's quantitative analysis entails an evaluation of scenarios that stress factors contributing to sensitivity of ratings and take into account the likelihood of severe collateral losses or impaired cash flows. Moody's weights the impact on the rated instruments based on its assumptions of the likelihood of the events in such scenarios occurring.

For ratings issued on a program, series or category/class of debt, this announcement provides certain regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series or category/class of debt or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody's rating practices. For ratings issued on a support provider, this announcement provides certain regulatory disclosures in relation to the rating action on the support provider and in relation to each particular rating action for securities that derive their credit ratings from the support provider's credit rating. For provisional ratings, this announcement provides certain regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating. For further information please see the ratings tab on the issuer/entity page for the respective issuer on www.moodys.com.

For any affected securities or rated entities receiving direct credit support from the primary entity(ies) of this rating action, and whose ratings may change as a result of this rating action, the associated regulatory disclosures will be those of the guarantor entity. Exceptions to this approach exist for the following disclosures, if applicable to jurisdiction: Ancillary Services, Disclosure to rated entity, Disclosure from rated entity.

Regulatory disclosures contained in this press release apply to the credit rating and, if applicable, the related rating outlook or rating review.

Please see www.moodys.com for any updates on changes to the lead rating analyst and to the Moody's legal entity that has issued the rating.

Please see the ratings tab on the issuer/entity page on www.moodys.com for additional regulatory disclosures for each credit rating.

Gaby Trinkaus
Asst Vice President - Analyst
Structured Finance Group
Moody's Investors Service Ltd.
One Canada Square
Canary Wharf
London E14 5FA
United Kingdom
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454

Masako Oshima
Senior Vice President
Structured Finance Group
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454

Iwona Fernandes
Associate Analyst
Structured Finance Group
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454

Releasing Office:
Moody's Investors Service Ltd.
One Canada Square
Canary Wharf
London E14 5FA
United Kingdom
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454

Moody's takes action in 3 UK non-conforming residential mortgage-backed securities
No Related Data.
Moodys.com