OREANDA-NEWS. This announcement corrects the version published on 30 September 2015 to clarify that there was an external appeal.

Fitch Ratings has affirmed Resimac UK RMBS No.1 Plc as follows:

Class A (XS1111217458) affirmed at 'AAAsf'; Outlook Stable
Class B (XS1111218001) affirmed at 'AA+sf'; Outlook Stable
Class C (XS1111218266) affirmed at 'A+sf'; Outlook Stable
Class D (XS1111218852) affirmed at 'BBB+sf'; Outlook Stable

The transaction is a securitisation of buy-to-let residential mortgage loans originated by Capital Home Loans (CHL). The mortgages have not been sold by the originator, but by a third party, Resimac Home Loans (UK) Limited which purchased the loans from CHL.

KEY RATING DRIVERS
Good Asset Performance
One year after closing, loans in arrears by more than three months remain limited at 0.2% of the current portfolio. Early-stage arrears loans (between one and two months) are also at 0.2% of the pool balance. This good performance is reflected in the affirmations.

Given the current low interest environment and the seasoning of the securitised assets in the portfolio (93.7 months), Fitch expects this good performance to continue in the coming months. This view is reflected in the Stable Outlooks on the notes.

Credit Ledger Operation
Fitch has identified that the transaction's liquidity and credit ledgers are operating differently to the method expected at closing. The liquidity ledger has not amortised in line with the balance of the rated notes and therefore these amortisation amounts have not been available to build the balance of the credit ledger towards its target of 3% of the original rated note balance. Instead the credit ledger has been topped-up using excess spread and as at July 2015 had increased to 0.42% of the original rated note balance from 0.35% at closing. The liquidity ledger remains at its original balance of GBP4.6m.

The effect on credit enhancement of the different operation of these ledgers is currently minimal, as the current target balance of the credit ledger is 0.45%. Nevertheless, Fitch notes that this structure will result in a materially slower build-up of credit enhancement than initially expected.

The issuer has confirmed to Fitch that the documentation will be amended to ensure that the ledgers are operated as initially intended. These amendments are expected to be in place as of the next payment date in October 2015.

Fitch also notes that the credit ledger was unexpectedly drawn on the first payment date when the portfolio revenue proved insufficient to cover note expenses. Since then, excess spread has been marginally positive, suggesting that there is little cushion available to offset losses should they arise. The limited excess spread is due to the fact that 99% of loans in the portfolio are indexed to the Bank of England base rate, with low margins.

RATING SENSITIVITIES
A change in the interpretation of the documentation that is different to that originally modelled could have an effect on the ratings of the notes.

Fitch published an exposure draft for UK residential mortgage assumptions on 22 September 2015(https://www.fitchratings.com/creditdesk/reports/report_frame_render.cfm?rpt_id=871376). The proposed criteria, if adopted, will lead to smaller loss expectations for all types of mortgage portfolios. As a result, Fitch expects all outstanding UK RMBS and CVB ratings to either be affirmed or upgraded. If the current criteria are updated after considering market feedback, Fitch will review all existing UK RMBS ratings within six months of the new criteria publication.

DUE DILIGENCE USAGE
No third party due diligence was provided or reviewed in relation to this rating action.

DATA ADEQUACY
Fitch has checked the consistency and plausibility of the information it has received about the performance of the asset pool and the transaction. There were no findings that were material to this analysis. Fitch has not reviewed the results of any third party assessment of the asset portfolio information or conducted a review of origination files as part of its ongoing monitoring.

Prior to the transaction closing, Fitch reviewed the results of a third party assessment conducted on the asset portfolio information, which indicated no adverse findings material to the rating analysis.

Prior to the transaction closing, Fitch conducted a review of a small targeted sample of CHL's origination files and found the information contained in the reviewed files to be adequately consistent with the originator's policies and practices and the other information provided to the agency about the asset portfolio.

Overall, Fitch's assessment of the information relied upon for the agency's rating analysis according to its applicable rating methodologies indicates that it is adequately reliable.

SOURCES OF INFORMATION
The information below was used in the analysis.
- Loan-by-loan data provided by CHL as at 30 June 2015
- Transaction reporting provided by Deutsche Bank as at 24 July 2015

In accordance with Fitch's policies the issuer appealed and provided additional information to Fitch that resulted in a rating action that is different than the original rating committee outcome.

REPRESENTATIONS AND WARRANTIES
A comparison of the transaction's Representations, Warranties & Enforcement Mechanisms to those typical for the asset class is available by accessing the appendix that accompanies the initial new issue report (see Resimac UK RMBS No.1 Plc - Appendix, dated 16 January 2015 at www.fitchratings.com). In addition refer to the special report "Representations, Warranties, and Enforcement Mechanisms in Global Structured Finance Transactions" dated 12 June 2015 available on the Fitch website.