KBRA Assigns Preliminary Ratings to ERM Funding Plc Series 2021-1

LONDON--(BUSINESS WIRE)--Kroll Bond Rating Agency UK Limited (KBRA) assigns preliminary ratings to six classes of notes issued by ERM Funding Plc Series 2021-1 (ERM Funding). ERM Funding is a securitisation of active (loan performing and borrower(s) in residence) and inactive (no borrowers in residence and/or loan in default-0.6% of loans in the process of liquidation) ERMs originated between April of 2018 and January of 2020 with an average of 28.5 months of seasoning. The properties collateralising the loans are all located in the UK. To KBRA’s knowledge, this transaction represents the second publicly-rated securitisation of ERMs since 2007 and the first to be comprised of recent vintage originations. The £322.9 million pool of underlying loans were originated by more2life Limited (more2life), a specialist mortgage lender focused on originating and servicing ERM loans in the UK.

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Disclosures

Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

This credit rating is endorsed by Kroll Bond Rating Agency Europe Limited for use in the European Union. Information on a credit rating’s endorsement status is available on its rating page at KBRA.com.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA UK

Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority pursuant to the Temporary Registration Regime. 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. Kroll Bond Rating Agency UK is located at Augustine House, Austin Friars, London, EC2N 2HA, United Kingdom.