Moody's Investors Service has placed on review for possible downgrade the ratings of 82 tranches in 27 U.K. non-conforming RMBS transactions and two tranches in one ABS U.K. consumer loan transaction.
The rating action follows the downgrade on earlier this month of Skipton Building Society to 'Ba1'/'NP' from 'Baa1'/'P-2'. Homeloan Management Limited (HML), which is part of Skipton, acts as servicer, back-up servicer and back-up cash manager in the affected transactions.
According to the rating agency, the ratings on the transactions are being reviewed for possible downgrade because of insufficient back-up servicing and back-up cash management arrangements. Moody's believes that these transactions are exposed to payment disruption risk.