Press Release|RMBS
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KBRA Assigns Preliminary Ratings to Cheshire 2021-1 PLC

21 Nov 2025   |   London

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KBRA UK (KBRA) assigns preliminary ratings to six classes of notes issued by Cheshire 2021-1 PLC (Cheshire Refinance), a static RMBS securitisation backed by a non-conforming portfolio of performing and reperforming mortgage loans. Cheshire Refinance will be a refinancing of the original Cheshire 2021-1 PLC transaction, which closed in September 2021 (50.7% of the portfolio) and Warwick Finance Residential Mortgages 4 PLC, which closed in 23 August 2019 (49.3% of the portfolio). The loans in Cheshire Refinance are secured by owner occupied (86.2%) and buy-to-let (13.8%) properties located in the United Kingdom.

The loans were originated by 14 different originators including GMAC-RFC Limited (34.0%), Platform Funding Limited (31.3%), Future Mortgages Ltd. (7.4%) and Mortgages Plc (6.9%), of which the majority are no longer originating in the UK mortgage market. Kensington Mortgage Company Limited (5.8%) is the sole originator within the portfolio that remains an active lender.

KBRA classifies this portfolio of loans as a non-conforming, considering that the majority of loans have a stressed performance history (only 49.0% of the loans in the portfolio have never been in arrears since July 2019), a high proportion of loans restructured (63.3%), a high proportion of interest-only loans (93.6%) and a high proportion of loans in arrears, currently at 31.7%. On the Closing Date, the seller shall transfer its beneficial interest in the Warwick 4 mortgage loans and the related security to the Issuer and shall continue to retain the beneficial interest in the original Cheshire 2021-1 PLC portfolio. Pepper (UK) Limited is the legal title holder and servicer for the loans previously securitised in the Cheshire 2021-1 PLC transaction and Topaz Finance Limited (a subsidiary of Computershare Limited) is the legal title holder and servicer for the loans previously securitised in the Warwick Finance Residential Mortgages 4 PLC transaction. Pepper has extensive experience servicing the mortgage loans, including those that are deep in arrears and have undergone prior restructuring. Topaz is an experienced mortgage service provider that has recently taken over the servicing of loans from another experienced mortgage servicer, Capita PLC.

The Notes’ payments priority is strictly sequential. The notes also benefit from a fully funded liquidity reserve fund that provides liquidity and credit support.

To access ratings and relevant documents, click here.

Click here to view the report.

Methodologies

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 Europe Limited for use in the European Union. 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 UK

Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA 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 (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S. Kroll Bond Rating Agency UK is located at 1 Connaught Place, 2nd Floor London, England.

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