Press Release|RMBS
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KBRA Assigns Ratings to Torres Residential DAC

26 Sep 2025   |   Dublin

Contacts

KBRA Europe (KBRA) assigns ratings to four classes of notes issued by Torres Residential DAC, a static RMBS transaction backed by Spanish mortgage participations and mortgage transfer certificates (CTHs). These mortgage participations and CTHs represent the economic rights to receive principal and revenue payments from corresponding Spanish residential mortgage loan agreements originated by Santander Consumer Finance, S.A. (SCF).

The collateral pool comprises €655.2 million of highly seasoned first-lien residential mortgage loans secured primarily on owner-occupied and second homes across Spain. The portfolio reflects credit characteristics broadly consistent with a prime portfolio profile, supported by significant seasoning and generally stable borrower performance. Approximately 19.6% of the loans have been subject to historical restructurings, the majority of which occurred more than a decade ago and have since demonstrated broadly stable repayment behaviour. The pool is geographically concentrated in Andalucía (38.5%) and Madrid (13.0%), with smaller exposures across other autonomous communities in Spain.

SCF is lender of record and primary servicer. Intrum Servicing Spain, S.A.U. has been appointed as special servicer for loans that are 120 days or more past due. In contrast to certain recent precedents, the Torres priority of payments separates interest and principal collections. The Notes may be optionally redeemed on the payment date falling in October 2028, with the Class B through Class RFN note margins increasing thereafter should the Notes remain outstanding beyond this date.

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 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), 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 Europe Limited is located at 2nd Floor, One George’s Quay Plaza, George’s Quay, Dublin 2, D02 E440, Ireland.

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