DUBLIN--(BUSINESS WIRE)--Kroll Bond Rating Agency Europe Limited (KBRA) assigns preliminary ratings to five classes of notes from Banna RMBS DAC. Banna is a static RMBS securitisation. The underlying collateral consists of £111.82 million seasoned first lien by buy-to-let (BTL) properties located primarily in the UK and whose owner/borrowers primarily reside in Ireland. The mortgages were originated by KBC Ireland PLC or its affiliates between 1991 and 2009. The mortgage loan assets were acquired by the Seller, Banna Funding DAC, as part of a larger bulk acquisition in August 2018 from the originators.
Pepper Finance Corporation (Ireland) DAC (Pepper) is the servicer for the subject portfolio as of November 2018. Pepper was founded in 2012 and has experienced significant growth over the past 12 months through onboarding of new clients and currently has approximately € 10 billion of residential assets under management. The company has experience in the servicing of both residential and commercial real estate assets, and as buy-to-let loans represent a hybrid of the two types of collateral, Pepper is appropriately structured to service the portfolio.
KBRA’s rating approach incorporates a review and analysis of the loan originator, servicer and other key transaction counterparties, a review of the Agreed Upon Procedure Report, use of the KBRA European Mortgage Model (KEMM) for UK mortgages to analyse collateral and borrower attributes, an assessment of the securitisation framework from a structural and legal perspective, and ongoing surveillance of the transaction. This analysis is further described in KBRA’s European RMBS Rating Methodology.
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Further disclosures relating to this rating action are available in the EU Information Disclosure Form. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.
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Related Publications: (available at www.kbra.com)
- Banna RMBS DAC Pre-Sale Report
- Banna RMBS DAC Tear Sheet
- European RMBS Rating Methodology
- European RMBS Rating Methodology Country Addendum: United Kingdom
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KBRA is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider, and is a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.