Fitch Assigns Expected 'AAA' Rating To Northern Rock's 3rd Covered Bond Issue.LONDON -- Fitch Ratings Fitch Ratings An international rating agency for financial institutions, insurance companies, and corporate, sovereign, and municipal debt. Fitch Ratings has headquarters in New York and London and is wholly owned by FIMALAC of Paris. has assigned an expected rating of 'AAA' to the EUR EUR In currencies, this is the abbreviation for the Euro. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 1.5 billion second series issued by Northern Rock plc under their covered bond Covered bonds are debt securities backed by cashflows from mortgages or public sector loans. They are similar in many ways to asset-backed securities created in securitization but covered bond assets remain on the issuer’s balance sheet. programme. The covered bonds have an expected extended maturity date of November 2021. Upon closing of this transaction, the agency expects to affirm the 'AAA' rating assigned to the first series. The expected rating is contingent upon receipt of final documents conforming to information already received. The programme takes the form of covered bonds to be issued from time to time directly by Northern Rock plc, which are guaranteed by Northern Rock Covered Bonds LLP LLP - Lower Layer Protocol , a partnership entity established for the purposes of the programme. Northern Rock Covered Bonds LLP has and will continue to collateralise its guarantee through the purchase of residential mortgage loans originated in England, Wales Wales, Welsh Cymru, western peninsula and political division (principality) of Great Britain (1991 pop. 2,798,200), 8,016 sq mi (20,761 sq km), west of England; politically united with England since 1536. The capital is Cardiff. and Scotland by Northern Rock plc. This guarantee will only be called upon in the event of the issuer defaulting on the covered bonds. The expected ratings are based on an asset coverage test ensuring sufficient overcollateralisation of mortgages to support the Covered Bond Guarantee should it become payable, as well as the programme's sound legal structure. Motivating factors for Northern Rock with regard to the programme include, amongst others, access to an alternative investor base (other than residential mortgage-backed securities) as well as relatively cheaper funding. The programme has a current overall limit of EUR10 billion. For further information please refer to the presale report 'Northern Rock Plc Covered Bond Programme,' which can be found on the Fitch Ratings web site, www.fitchratings.com. Fitch's rating definitions and the terms of use Terms of Use are rules set up by the owner of an intellectual property or service to govern how they may be legally used. In many cases, terms of service are used as a contractual agreement between a company and users of a service they provide. of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures Policies and Procedures are a set of documents that describe an organization's policies for operation and the procedures necessary to fulfill the policies. They are often initiated because of some external requirement, such as environmental compliance or other governmental are also available from the 'Code of Conduct' section of this site. |
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