KBRA Europe (KBRA) assigns preliminary ratings to notes issued by Kinbane 2024-RPL 2 DAC (Kinbane 2024-RPL2), a static RMBS securitisation collateralised by predominantly reperforming mortgage loans (RPL). As of the Pool Cut-off Date in August 2024, the underlying collateral is a €434.5 million portfolio consisting of seasoned first lien performing and reperforming mortgages. These mortgages are largely secured by owner-occupied properties (83.6%) and buy-to-let properties (16.4%) located in Ireland. The portfolio predominantly includes mortgages originated by two Irish originators or current subsidiaries thereof, Allied Irish Bank Group (51.3%) and Ulster Bank (43.7%).
Kinbane 2024-RPL2 represents a refinancing of the notes currently outstanding under Shamrock Residential 2022-1 DAC (Shamrock 2022-1) which closed in March 2022 and comprises the loans which previously collateralized the transaction to be refinanced.
The portfolio is comprised of two sub-portfolios, Barrow and Bay. The beneficial interest in the Barrow sub-portfolio was acquired from companies associated with Cerberus Capital Management in November 2021, who originally purchased these mortgages from the originating banks through a series of acquisitions between 2016 and 2018. Similarly, the beneficial interest in the Bay sub-portfolio was acquired in February 2022 from the originating bank. The Barrow sub-portfolio is serviced by Cabot Financial (Ireland) Limited (Cabot; 48.7%), while the Bay sub-portfolio is serviced by Mars Capital Finance Ireland DAC (Mars; 51.3%, together with Cabot, the Administrators). The Administrators have a meaningful number of years of experience servicing re-performing loans and implementing restructuring solutions to loans deep in arrears, secured by owner-occupied properties, in accordance with the Code of Conduct on Mortgage Arrears (CCMA) and the Mortgage Arrears Resolution Process (MARP) in Ireland.
The payment priority of the notes is strictly sequential, with the notes benefiting from fully funded reserve funds at closing that provide both liquidity and credit support.
To access ratings and relevant documents, click here.
Click here to view the report.
Related Publications
- Shamrock Residential 2022-1 DAC Surveillance Report
- Irish Mortgage and Housing Trends
- ESG: Irish Housing: Challenges to a Greener Ireland
- Supportive Environment for Restructured Loans in Ireland
Methodologies
- RMBS: European RMBS Rating Methodology
- RMBS: European RMBS Rating Methodology Country Addendum: Republic of Ireland
- Structured Finance: 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 UK Limited for use in the UK. 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 Europe
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. 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 Europe is located at 6-8 College Green, Dublin 2, Ireland.
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Contacts:
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Tomas Cruz, Associate (Lead Analyst)
+353 1 588 1188
tomas.cruz@kbra.com
Kali Sirugudi, Managing Director
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Katherine Quirke, Senior Director
+353 1 588 1185
katherine.quirke@kbra.com
Jack Kahan, Senior Managing Director, Global Head of ABS RMBS (Rating Committee Chair)
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mauricio.noe@kbra.com
