KBRA UK (KBRA) assigns preliminary ratings to six classes of notes issued by Temple Quay No.2 PLC (TempleQ, Issuer), a static RMBS securitisation backed by a non-conforming portfolio of performing and reperforming (RPL) mortgage loans. TempleQ will be a refinancing of the portfolio securitised in the Temple Quay No.1 PLC transaction, which closed in November 2022. The portfolio, aggregating £279.1 million in current balance as of 30 September 2025, consists of loans secured by owner occupied (79.4%) and buy-to-let (20.6%) properties located in the United Kingdom.
The portfolio includes loans originated by four originators Bristol West plc (42.0%), Bank of Ireland UK Branch (38.1%), Bank of Ireland Home Mortgages (19.7%) and Bristol West Building Society (0.2%). Bristol West business was transferred to The Governor and Company of the Bank of Ireland (seller), acting through its U.K. branch in 2007.
At origination majority of these loans would have been classified as prime, however, the stressed performance history (only 21.1% loans never in arrears since June 2020), the proportion of loans restructured (39.5%), a high proportion of interest-only loans (85.7%) and a high proportion of loans in arrears, currently at 47.2%, KBRA classifies this portfolio as a non-conforming portfolio. On the Closing Date, the seller shall transfer its beneficial interest in the mortgage loans and the related security to the Issuer. The legal title of the loans is held by BoIUK and The Governor and Company of the Bank of Ireland, UK Branch. BoIUK acts as the servicer and has a meaningful number of years of experience servicing these mortgage loans and loans deep in arrears which have been restructured in the past.
The Notes' payments priority is strictly sequential. The notes will also benefit from fully funded reserve funds that provide liquidity and credit support.
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Methodologies
- RMBS: European RMBS Rating Methodology
- RMBS: European RMBS Rating Methodology Country Addendum: United Kingdom
- Structured Finance: Global Structured Finance Counterparty Methodology
- ESG Global Rating Methodology
Disclosures
Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.
A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.
Information on the meaning of each rating category can be located here.
This credit rating is endorsed by Kroll Bond Rating Agency Europe Limited for use in the European Union. Information on a credit rating's endorsement status is available on its rating page at KBRA.com.
Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.
There are certain issuers, entities or transactions rated by KBRA Europe or KBRA UK that may be or have relationships with Shareholders and/or Shareholder-Related Companies, as that term is defined in KBRA's Shareholder and Shareholder Related Companies for KBRA Europe and KBRA UK Policy and Procedure. Relevant disclosure information may be found here.
About KBRA UK
Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan's Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S. Kroll Bond Rating Agency UK is located at 1 Connaught Place, 2nd Floor London, England.
Doc ID: 1011858
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Contacts:
Analytical Contacts
Hrishikesh Oturkar, Director (Lead Analyst)
+44 20 8148 1070
hrishikesh.oturkar@kbra.com
Irfan Surti, Associate Director
+44 20 8148 1079
irfan.surti@kbra.com
Kali Sirugudi, Managing Director
+44 20 8148 1050
kali.sirugudi@kbra.com
Jack Kahan, Senior Managing Director, Global Head of ABS RMBS (Rating Committee Chair)
+1 646-731-2486
jack.kahan@kbra.com
Business Development Contacts
Miten Amin, Managing Director
+44 20 8148 1002
miten.amin@kbra.com
Mauricio Noé, Co-Head of Europe
+44 20 8148 1010
mauricio.noe@kbra.com
