OREANDA-NEWS. Fitch Ratings has affirmed Sceptre Funding No 1 PLC's fixed-rate class A bonds, due February 2027 as follows:

GBP293.2m class A (XS0441698866) affirmed at 'AA+sf'; Outlook Stable

The transaction is a securitisation of rental income derived from a single office property located in London's west-end. The property is fully let to the First Secretary of State (UK: rated AA+/Stable) until December 2028, with a break option in December 2026.

KEY RATING DRIVERS
The bonds derive their cash flows solely from this lease and are scheduled to amortise fully by the final maturity date in February 2027. Since closing in July 2009, scheduled amortisation has reduced the outstanding balance of the bonds to GBP293.2m from GBP360.3m. The bonds are fully credit-linked to the sovereign rating of the UK.

RATING SENSITIVITIES
The lease, together with its underlying obligations, cannot be assigned to another party except to another UK government department; consequently the credit quality of the cash flow will always be linked to that of the UK government.

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.

Fitch did not undertake a review of the information provided about the underlying asset pool ahead of the transaction's initial closing. The subsequent performance of the transaction over the years is consistent with the agency's expectations given the operating environment and Fitch is therefore satisfied that the asset pool information relied upon for its initial rating analysis was adequately reliable.

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.
-Transaction reporting provided by cash manager as at 9 November 2015