KBRA Assigns Preliminary Ratings to Temple Quay No.1 PLC

LONDON--(BUSINESS WIRE)--KBRA UK (KBRA) assigns preliminary ratings to six classes of notes to be issued by Temple Quay No.1 PLC (TempleQ), a static RMBS securitisation backed by a non-conforming portfolio of performing and reperforming (RPL) mortgage loans. These loans are secured by owner occupied (OO, 76.0%) and buy-to-let (BTL, 24.0%) properties located in the United Kingdom (UK).

The TempleQ portfolio includes loans originated by four originators Bristol & West plc, Bank of Ireland UK Branch (BoIUK), Bank of Ireland Home Mortgages and Bristol & West Building Society. Bristol & West business was transferred to The Governor and Company of the Bank of Ireland (GOVCOUK, seller), acting through its U.K. branch in 2007. At origination majority of these loans would have been classified as prime, however, the stressed performance history (only 18.1% loans never in arrears since 2017), the proportion of loans restructured (28.1%), a high proportion of interest-only loans (IO, 86.1%) and a high proportion of loans in arrears, currently at 43.6%, KBRA classifies this portfolio as a non-conforming portfolio. On the Closing Date, the seller will transfer its beneficial interest in the mortgage loans and the related security to the Issuer. The legal title of the loans is held by Bank of Ireland (UK) PLC and The Governor and Company of the Bank of Ireland, UK Branch. BoIUK will act as the servicer and has a meaningful number of years of experience servicing these mortgage loans and loans deep in arrears which have been restructured in the past.

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Related Publications

• European RMBS Rating Methodology
• European RMBS Rating Methodology Country Addendum: United Kingdom
• Global Structured Finance Counterparty Methodology
• ESG Global Rating Methodology

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.

There are certain issuers, entities or transactions rated by KBRA Europe or KBRA UK that may be or have relationships with Shareholders and/or Shareholder-Related Companies, as that term is defined in KBRA’s Shareholder and Shareholder Related Companies for KBRA Europe and KBRA UK Policy and Procedure. Relevant disclosure information may be found here.

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 1 Connaught Place, 2nd Floor London, England W2 2ET.