Preliminary Ratings Assigned To Residential Mortgage Securities 28#s Class A To E U.K. RMBS Notes

Stocks and Financial Services Press Releases Wednesday February 25, 2015 17:26
LONDON--25 Feb--Standard & Poor's

LONDON (Standard & Poor's) Feb. 25, 2015--Standard & Poor's Ratings Servicestoday assigned its preliminary credit ratings to Residential MortgageSecurities 28 PLC's (RMS 28) class A to E notes. At closing, the RMS 28 willalso issue unrated class F1, F2, F3, Z, X1, X2, and R notes (see list below).

RMS 28 is a securitization of a pool of first-ranking buy-to-let andowner-occupied residential mortgage loans, to nonconforming borrowers, securedon properties in England, Scotland, and Wales.

Of the collateral pool, 77.19% was originated in 2007; Kensington Mortgage Co.Ltd. (KMC) originated 87.61%, and Money Partners Ltd. originated 12.39%. Atclosing, the issuer will purchase the portfolio from the seller (Kayl PLS.a.r.l) and will obtain the beneficial title to the mortgage loans.

RMS 28 follows RMS 27, which closed in October 2013. In addition, KMCoriginated Kensington Mortgage Securities PLC's series 2007-1 and fourtransactions under the Money Partners Securities banner. More recentoriginations have been under the Gemgarto banner (Gemgarto 2012-1 PLC).

At closing, the transaction will have a reserve fund which will be funded fromthe class Z notes. The required amount of this fund will be 3% of the class Ato F notes at closing. The closing reserve fund will be split between aliquidity reserve fund and a non-liquidity reserve fund.

The notes' interest rate will be based on an index of three-month LondonInterbank Offered Rate (LIBOR). Within the mortgage pool, the loans are linkedto the Bank of England base rate, the Money Partners Variable Rate, theKensington Variable Rate, and three-month LIBOR. There will be no swap in thetransaction to cover the interest rate mismatches between the assets and


KMC will act as mortgage administrator for all of the loans in thetransaction. However, it has delegated its functions to Homeloan ManagementLtd. KMC will continue to act as special servicer for the collateral pool.

Our ratings reflect our assessment of the transaction's payment structure,cash flow mechanics, and the results of our cash flow analysis to assesswhether the rated notes would be repaid under stress test scenarios.Subordination and the non-liquidity reserve fund provide credit enhancement to

the notes. Taking these factors into account, we consider the available creditenhancement for the rated notes to be commensurate with the preliminaryratings that we have assigned.

SEC Rule 17g-7 requires an NRSRO, for any report accompanying a credit ratingrelating to an asset-backed security as defined in the Rule, to include adescription of the representations, warranties and enforcement mechanismsavailable to investors and a description of how they differ from the

representations, warranties and enforcement mechanisms in issuances of similarsecurities.
The Standard & Poor's 17g-7 Disclosure Report included in this credit rating report is available at

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