KBRA Europe Assigns Preliminary Ratings to Towd Point Mortgage Funding 2018 – Auburn 12 Plc (TPMF 2018-AU12)
23 Juli 2018 - 7:15PM
Business Wire
Kroll Bond Rating Agency Europe Limited (KBRA) assigns
preliminary ratings to five classes of notes from Towd Point
Mortgage Funding 2018 - Auburn 12 Plc (TPMF 2018-AU12), a UK RMBS
transaction secured predominantly by seasoned Buy-to-Let (BTL)
mortgages. This transaction is the 12th securitisation under the
Auburn shelf, and the first European rated RMBS securitisation for
KBRA.
TPMF 2018-AU12 is a static RMBS securitisation. The £393.1
million mortgage pool was originated by Capital Home Loans Limited
(CHL) between 1994 and 2008, and CHL has sponsored several
transactions that use the Auburn label. The TPMF 2018-AU12
transaction is being issued to refinance the remaining collateral
that was securitised in Auburn Securities 9 Plc.
CHL is a mortgage loan servicer incorporated as a limited
company in England and Wales. Prior to 2008, CHL operated as a
large specialist lender for BTL mortgages, during which time it
originated the collateral securing TPMF 2018-AU12. The company,
which was established in 1987, was the subject of two acquisitions
over its history, and is currently owned by Promontoria (Lansdowne)
Limited. This entity is an affiliate of Cerberus Capital Management
(Cerberus), as is FirstKey Mortgage, LLC (FKM), which serves as a
co-sponsor of TPMF 2018-AU12. CHL’s business has evolved over the
years, and it currently focuses on servicing portfolios of legacy
UK mortgage loans in the portfolios of entities acquired by
Cerberus.
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.
For complete details on the analysis, please see our pre-sale
report, Towd Point Mortgage Funding 2018 – Auburn 12 Plc (TPMF
2018-AU12), which was published on July 23, 2018 on
www.kbra.com.
Representations & Warranties
Disclosure
All Nationally Recognized Statistical Rating Organizations are
required, pursuant to SEC Rule 17g-7, to provide a description of a
transaction’s representations, warranties and enforcement
mechanisms that are available to investors when issuing credit
ratings. KBRA’s disclosure for this transaction can be found in the
report available here.
Disclosures
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.
Related Publications:
(available at www.kbra.com)
- TPMF 2018-AU12 Pre-Sale
Report
- TPMF 2018-AU12 Pre-Sale
ReportTPMF 2018-AU12 Tear Sheet
- TPMF 2018-AU12 Pre-Sale
ReportTPMF 2018-AU12 Tear SheetEuropean RMBS Rating
Methodology
- European RMBS Rating Methodology
Country Addendum: United Kingdom
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About KBRA and KBRA
Europe
KBRA is a full service credit rating agency registered with the
U.S. Securities and Exchange Commission as an NRSRO. In addition,
KBRA is recognized by the National Association of Insurance
Commissioners as a Credit Rating Provider and 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20180723005603/en/
Analytical:Kroll Bond Rating
AgencyStephen Kemmy, +353 (1) 669-2678Director (Lead
Analyst)skemmy@kbra.comorGopal Narsimhamurthy, +353 (1)
669-2682Associate Directorgnarsimhamurthy@kbra.comorEd DeVito,
+1-646-731-2319Senior Directoredevito@kbra.comorJack Kahan,
+1-646-731-2486Managing Director (Rating Committee
Chair)jkahan@kbra.com