(The following statement was released by the rating agency)
-- We have affirmed our ABOVE AVERAGE overall rankings on HML as a primary and special servicer of U.K. residential mortgages.
-- The outlook is stable.
Standard & Poor's Ratings Services has affirmed its overall ABOVE AVERAGE rankings on HML as a primary and special servicer of U.K. residential mortgages.
The ABOVE AVERAGE rankings reflect our view of the following:
-- HML has a formal process for the preparation and approval of its business plan. Meeting objectives has proved to be challenging as market conditions remain difficult.
-- Since our last review, there have been two senior departures and as a result, the company is finalizing a new team to provide future management capability.
-- Internal audit and risk management disciplines are robust, in our view.
-- HML has further improved its IT platform and we are aware that it has planned additional enhancements.
-- HML has boarded two new large residential portfolios since our last review, testing the company's boarding capabilities, which we understand stood up well and fully met the company's expectations.
-- The company has expanded its special servicing team, resulting in the development of additional analytics.
The outlook is stable for primary and special servicing of residential mortgages in the U.K.
MANAGEMENT AND ORGANIZATION
Our subranking for management and organization is ABOVE AVERAGE.
Our subranking for loan administration is ABOVE AVERAGE.
We consider HML's financial position to be Sufficient. We have reviewed HML's and Skipton Building Society's audited financial statements and are of the opinion that there is sufficient financial strength to sustain HML's servicing operations, as described, for the next 12 to 18 months. This opinion does not replace that of a senior debt or counterparty credit rating.
RELATED CRITERIA AND RESEARCH
-- Servicer Evaluation: Homeloan Management Ltd., Aug. 10, 2012
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