OREANDA-NEWS. Fitch Ratings has affirmed Arkle Master Issuer plc, a prime UK RMBS master trust. A full list of rating actions is available at www.fitchratings.com or by clicking the link above.

KEY RATING DRIVERS
High Credit Enhancement
Credit enhancement has increased significantly since the last note issuance in February 2012, due to the repayment of senior notes, while the reserve fund and subordinated class Z notes have not amortised. The class A notes are now supported by 31.7% (15.4% at last issue) of credit enhancement, of which 5.9% is from subordination of the lower class B, class M and class C tranches, 21.4% from the class Z notes and 4.3% from the reserve fund.

Improved Arrears Performance
The arrears performance of the underlying mortgages has improved since February 2012. The proportion of loans more than 90 days in arrears has fallen by 17bp in the past two years. The current level of 90+ days arrears by current balance is 1.3%, in line with the average for the sector.

Consistent Underlying Asset Concentrations
The key characteristics of the mortgages in the pool have remained stable since the last issue, despite the pool size shrinking by GBP7.78bn due to prepayments and amortisation. In reviewing the programme for changes such as the average original loan-to-value ratio, the proportion of interest-only loans, and the level of concentration in London and the South East Fitch has found no evidence of negative selection in the current pool.

RATING SENSITIVITIES
Fitch considers the ratings fairly insensitive to increasing stress factors, given the high levels of credit enhancement and the strong arrears performance to date. The portfolio demonstrated solid credit characteristics at the last issue date and in Fitch's view, the notes would now be able to withstand the most extreme scenarios without the ratings coming under pressure.