Moody's Investors Service assigned provisional ratings to to the third securitization of prime U.K. owner-occupied mortgages by Yorkshire Building Society.

The deal, dubbed Brass No.3 PLC, is backed by loans originated by Yorkshire Building Society subsidiary, Accord Mortgages.

Barclays is lead manager on the deal.

The structure includes a ‘AAA’-rated class A tranche that has not been sized yet. The junior tranche will not be rated by Moody’s.  

At closing the total credit enhancement for the class A notes is expected to be 12.45%.

Moody’s said the portfolio has an expected loss of 1.3%, which  is slightly above the average for the prime U.K. sector average; it is also an increase from the 1.2% expected loss on the originator’s pervious securitization, Brass No.2.

Moody’s said that the greater loss expectation reflects the “greater proportion of interest-only loans and higher LTV in the pool.”

 

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Corrected September 23, 2013 at 6:07PM: dd