KBRA Europe (KBRA) assigns preliminary ratings to two classes of notes issued by Portman Square 2023-NPL1 DAC (Portman 2023, the Issuer), a static securitisation collateralised by a €576.3 million portfolio of primarily non-performing Irish residential mortgage loans.

The mortgage loans in the portfolio were originally acquired in April 2021 by the Seller (Panelview DAC) from Allied Irish Bank PLC (AIB), AIB Finance Limited, AIB Mortgage Bank Unlimited Company, EBS DAC, EBS Mortgage Finance, Haven Mortgages Limited and AIB Group (UK) plc, all members of the Allied Irish Banks PLC (AIB) group of companies (together the Originators or AIB). At the time of sale, servicing of the loans and legal title of the mortgage assets was transferred from AIB to Mars Capital Finance Ireland DAC (Mars, the Servicer). In November 2021, the assets were sold to and securitised through Portman Square 2021-NPL1 (Portman 2021) and Lapithus Management DAC (Lapithus, the Servicer Consultant) was additionally appointed to provide certain monitoring services in relation to the mortgage portfolio.

While the original balance of securitised loans in Portman 2021 stood at €918.8 million, the Servicer has collected €363.3 million (compared to an original business plan of €108.0 million by March 2023) through a variety of resolutions leading to the existing notes issued by Portman 2021 amortising from an original balance of €365.4 million to a class A note factor of 9%. As a result, the arranger is amending and restating the existing securitisation, redeeming the existing outstanding notes and issuing new notes backed by the remaining collateral, while the Issuer has been renamed Portman Square 2023-NPL1 DAC.

The mortgage loans will continue to be administrated by Mars, and Lapithus will continue in its role as the Servicer Consultant.

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Related Publications

• European Non-Performing Loan Securitisation Rating Methodology
• 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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