KBRA Assigns Ratings to Motor Securities 2018-1 DAC Credit Linked Notes

DUBLIN–(BUSINESS WIRE)–Kroll Bond Rating Agency Europe Limited (KBRA) assigns definitive ratings to Motor Securities 2018-1 DAC Class C Notes and Class D1 Notes. The transaction is a synthetic securitisation of prime auto conditional sale agreements originated by Santander Consumer Finance (UK) PLC (“SCUK”) for purposes of purchasing credit and voluntary termination loss protection.

The ratings assigned reflect Kroll Bond Rating Agency Europe Limited’s further analysis of Motor Securities 2018-1 DAC a synthetic securitization of prime auto conditional sale (“CS”) agreements (the “Reference Obligations”) originated by Santander Consumer Finance (UK) PLC (“SCUK”).

On 12 December 2019, KBRA issued ratings on the Tranches that reflect the risk for the Protection Seller to have to make payments to the Protection Buyer following a Credit Event as defined in the CPD. KBRA’s ratings were determined based on the credit quality of the Reference Obligations, SCUK’s track record as an experienced servicer of auto finance receivables, and the credit enhancement of the respective tranches. Credit protection has been purchased by the Protection Buyer against a static pool of Reference Obligations. Refer to the Tranche New Issue Report for detail regarding the static pool of reference obligations.

KBRA is now assigning ratings to the credit-linked notes (“CLNs” or “Notes”) issued by the Protection Seller to fund its obligations under the credit protection deed.

A deterioration of the credit worthiness of SCUK could potentially interrupt Credit Protection Fee payments and ongoing repayment of recoveries following a credit event. KBRA has performed a credit estimate of SCUK and determined it has credit characteristics that are sufficient to support the ratings assigned to the Class C Notes and Class D1 Notes.

SCUK is 100.0% owned by Santander UK plc, which is the single point of entry for all UK activities of Banco Santander S.A. SCUK is a frequent issuer of ABS transactions backed by UK auto receivables since 2012, including conditional sale and personal contract purchase agreements. SCUK has also securitized unsecured consumer loans.

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Disclosures

Further disclosures relating to this rating action are available in the EU Information Disclosure Form. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

To access ratings, reports and disclosures, click here.

Related Publications: (available at www.kbra.com)

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About KBRA and KBRA Europe

KBRA is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. 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, and is a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.

Contacts

Analytical Contacts:

Killian Walsh, Director (Lead Analyst)

Dublin

+353 1 588 1184

kwalsh@kbra.com

Adam DeJong, Associate

Dublin

+353 1 588 1270

adejong@kbra.com

Alla Mikhalevsky, CFA, Director

New York

+1 (646) 731-3356

amikhalevsky@kbra.com

Eric Neglia, Managing Director

New York

+1 (646) 731-2456

eneglia@kbra.com

Rosemary Kelley, Senior Managing Director (Rating Committee Chair)

New York

+1 (646) 731-2337

rkelley@kbra.com

Business Development Contact:

Mauricio Noe, Senior Managing Director

+44 20 8148 1010

mnoe@kbra.com

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