Sign in Subscribe
Moody's Investors Service Inc.

Moody's Assigns Definitive Ratings to Bletchley Park Funding 2025-1 PLC Notes

Strategic Insights

— 1 min read

Moody's Investors Service has assigned definitive ratings to notes issued by Bletchley Park Funding 2025-1 PLC, a UK buy-to-let mortgage-backed transaction. The ratings reflect the credit quality of the portfolio, structural features, and legal integrity of the transaction. The portfolio consists of 1,144 mortgage loans with a current balance of GBP 274.7 million as of 30 April 2025. Moody's has assigned definitive ratings to Class A to E notes, with ratings ranging from Aaa (sf) to Ba1 (sf).

Key Takeaways:

  • The portfolio consists of 1,144 mortgage loans with a current balance of GBP 274.7 million as of 30 April 2025.
  • Moody's has assigned definitive ratings to Class A to E notes, with ratings ranging from Aaa (sf) to Ba1 (sf).
  • The ratings are primarily based on the credit quality of the portfolio, structural features, and legal integrity of the transaction.
  • The transaction benefits from a liquidity reserve fund sized at 1.4% of the Classes A and B notes, which will amortise to the lower of, the initial amount and 2% of the outstanding principal balance of the Class A and B notes.
  • BCMGlobal Mortgage Services Limited is the servicer, and Citibank, N.A., London Branch (Aa3(cr) / P-1(cr)) is the cash manager in the transaction.
  • The principal methodology used in these ratings was "Residential Mortgage-Backed Securitizations" published in October 2024.
  • The expected loss captures Moody's expectations of performance considering the current economic outlook, while the MILAN Stressed Loss captures the loss Moody's expects the portfolio to suffer in the event of a severe recession scenario.
  • The portfolio lifetime expected loss is 1.6%, while the MILAN Stressed Loss is 14.1%, higher than the UK buy-to-let RMBS sector average.

Statistics:

  • Portfolio consists of 1,144 mortgage loans with a current balance of GBP 274.7 million as of 30 April 2025.
  • Definitive ratings assigned to Class A to E notes: Aaa (sf), Aa3 (sf), A2 (sf), Baa1 (sf), and Ba1 (sf).
  • Liquidity reserve fund sized at 1.4% of the Classes A and B notes.
  • MILAN Stressed Loss: 14.1%
  • Expected Loss: 1.6%

Sources:

  • Moody's Ratings, "Moody's Assigns Definitive Ratings to Bletchley Park Funding 2025-1 PLC Notes" (2025)
  • "Residential Mortgage-Backed Securitizations" published in October 2024, available at https://ratings.moodys.com/rmc-documents/429877

Read more