KBRA Assigns Ratings to Kinbane 2024-RPL 2 DAC
25 Nov 2024 | Dublin
KBRA Europe (KBRA) assigns 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 closing pool cut-off date of October 2024, the underlying collateral is a €427.4 million portfolio consisting of seasoned first lien performing and reperforming mortgages. These mortgages are largely secured by owner-occupied properties (83.8%) and buy-to-let properties (16.2%) located in Ireland. The portfolio predominantly includes mortgages originated by two Irish originators or current subsidiaries thereof, Allied Irish Bank Group (51.2%) and Ulster Bank (43.7%).
Kinbane 2024-RPL2 represents a refinancing of the notes previously outstanding under Shamrock Residential 2022-1 DAC which closed in March 2022 and comprises the loans which previously collateralised that transaction.
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; 48.8%), while the Bay sub-portfolio is serviced by Mars Capital Finance Ireland DAC (Mars; 51.2%, 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.
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