OREANDA-NEWS. December 22, 2015. Fitch Ratings says that the restructuring of Lannraig Master Issuer plc will not have a rating impact on the programme's notes.

On 17 December 2015 the issuer publicly announced a number of proposed changes. Fitch has been provided with revised programme documentation and legal opinions. We have conducted an analysis of the proposed changes and do not expect the changes to have a rating impact on Lannraig Master Issuer plc's existing rated notes (Series 2011-1 Class A and Series 2012-1 Class A; both rated AAAsf)

The notes are backed by UK mortgage loans historically originated in the UK by Clydesdale Bank plc (Clydesdale, A/Negative/F1) and Yorkshire Bank Home Loans Limited, which are subsidiaries of National Australia Bank Limited (AA-/Stable/F1+).

Following the restructuring, credit enhancement for the class A notes will be 16.67%, provided by the subordination of the unrated class Z1 VFN (14.97%) as well as a fully funded reserve fund (1.70%).

The changes in the restructure include:
-Amendment to some swap documents as well as bank account agreements to reflect the current counterparty criteria of rating agencies
-Cancellation of the basis swap that hedges against the change in the spread between Bank Base Rate linked mortgages and three-month GBP Libor linked note payments.
-Transfer of the SVR swap to Clydesdale Bank from National Australia Bank
-Removal of the replacement triggers on the swap linked to SVR loans as well as collateral posting requirement upon downgrade
-Consolidation of the multiple fixed rate swaps into one swap
-Removal of rating triggers from the mortgages trustee transaction account
-Removal of the mortgage trust account reserve
-Removal of collection account triggers
-Addition of a funding Clydesdale Bank account, which will retain non-timely and non-bullet funds