Moody's Investors Service will rate the new U.K. RMBS deal issued from Santander U.K.'s Fosse Master trust.
The rating agency said it assigned provisional credit ratings of 'Aaa' to the Australian dollar denominated tranche as well as the class 2A and 3A sterling denominated floating rate tranches. The class 2B, sterling denominated, floating-rate notes due 2054, have been assigned a rating of 'Aa3'.
The notes are backed by a pool of prime U.K. residential mortgages originated by Santander UK plc (A1 / P-1), under the Alliance and Leicester brand. It will be the tenth issue out of the Fosse Master Trust structure.
Analysts at Deutsche Bank said in a report that as one of the cleanest trusts that is backed by a large sponsor, there is space for the Fosse deal to price tighter than the 170 to 180 basis range last week's U.K. building society RMBS priced at.