UK prime RMBS sta­ble in Fe­bru­ary, NPLs at 1.1%

Financial Mirror (Cyprus) - - FRONT PAGE -

The per­for­mance of the UK prime res­i­den­tial mort­gage-backed se­cu­ri­ties (RMBS) mar­ket re­mained sta­ble in the three-month pe­riod ended Fe­bru­ary 2015, ac­cord­ing to Moody’s In­vestors Ser­vice.

The 90+ day delin­quen­cies de­creased to 1.11% in Fe­bru­ary from 1.50% in Novem­ber 2014. Out­stand­ing re­pos­ses­sions slightly de­creased to 0.06% in Fe­bru­ary from 0.07% in Novem­ber 2014 and cu­mu­la­tive losses in­creased marginally to 0.60% in Fe­bru­ary from 0.55% in Novem­ber 2014. Moody’s an­nu­alised to­tal re­demp­tion rate trend was rel­a­tively sta­ble at 17.36% in Fe­bru­ary.

The rat­ing agency said it ex­pects that the over­all col­lat­eral qual­ity for new UK RMBS will im­prove given the favourable eco­nomic con­di­tions such as higher GDP growth than in the rest of Europe, low in­ter­est rates and lower lev­els of un­em­ploy­ment than in the rest of Europe. In the UK, it fore­casts a GDP growth of around 2.5% in 2015 and 2016.

In March, Moody’s placed the 77 notes on re­view for up­grade from Ar­ran Res­i­den­tial Mort­gages Fund­ing 2010-1 Plc, Ar­ran Res­i­den­tial Mort­gages Fund­ing 2011-1 and Ar­ran Res­i­den­tial Mort­gages Fund­ing 2011-2 Plc, Greenock Fund­ing No.5 Plc and Gran­ite Mas­ter trust.

The rat­ing agency has also as­signed new rat­ings to six trans­ac­tions in the UK prime RMBS mar­ket: Brass No. 4 plc, orig­i­nated by Ac­cord Mort­gages Limited (not rated), is­sued GBP 1.11 bln; Fosse Mas­ter Is­suer plc Se­ries 2015 -1, orig­i­nated by San­tander UK (A2/Prime-1), is­sued GBP 1.0 bln; La­nark Mas­ter Is­suer plc Se­ries 2014-2, orig­i­nated by Cly­des­dale Bank plc (Baa2/Prime-2) and York­shire Bank Home Loans Limited (not rated), is­sued GBP 1.19 bln; Sil­ver­stone Mas­ter Is­suer plc Se­ries 2015 -1, orig­i­nated by Na­tion­wide Build­ing So­ci­ety (A2/Prime-1), is­sued GBP 1.53 bln; Slate No. 1 plc, orig­i­nated by Brad­ford & Bin­g­ley plc (A1/Prime-1, sta­ble), Legal & Gen­eral Bank Ltd (not rated), Mort­gage Ex­press (not rated) and NRAM plc (C/Prime-1), and sold to the is­suer by Con­sil­ium Air­ton Ltd, is­sued GBP 2.38 bln; and, Slate No. 2 plc, orig­i­nated by GMAC-RFC Ltd (93.4 % of loans) and Kens­ing­ton Mort­gage Co. (6.6% of loans), and sold to the is­suer by Con­sil­ium Air­ton Ltd (not rated), is­sued GBP 0.41 bln.

Moody’s rates 89 UK prime RMBS trans­ac­tions with an out­stand­ing pool bal­ance of GBP 139.3 bln.

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