KBRA UK (KBRA) assigns preliminary ratings to nine classes of notes issued by Harben Finance 2017-1 Plc (Harben 2017-1), a static RMBS securitisation collateralised by seasoned buy-to-let (BTL) mortgage loans. The portfolio, aggregating £512.1 million in current balance, consists of BTL loans secured by first lien residential properties located in England and Wales.
Harben Finance 2017-1 will refinance the existing Harben Finance 2017-1 Plc transaction, which closed in February 2022. The February 2022 transaction was itself a refinancing of the original Harben Finance 2017-1 Plc transaction, which closed in April 2017. The loans were originated by Mortgage Express (99.5%) and Bradford Bingley PLC (0.5%), both of whom are no longer originating in the UK mortgage market. Harben 2017-1 continues to be serviced by Topaz Finance Limited, a member of the Pepper Advantage group of companies.
The Harben 2017-1 portfolio performance has been relatively better than some of the other legacy BTL transactions. Its expected performance is characterised by low loan-to-value (indexed) and a weighted average remaining term of 4.2 years. The issuance structure of Harben 2017-1 is typical to UK RMBS issuance with the exceptions around pro-rata payments of interest and principal on the Class A1 Debt (Class A1 Loan Note and Class A1 notes) and Class A2 notes until the Class A2 principal deficiency ledger (PDL) trigger event. Class A1 Debt, Class A2 notes and, subject to Class B PDL condition or when most senior, Class B notes will be supported by a Liquidity Facility up to the First Optional Redemption Date and thereafter by the Liquidity Reserve Fund. The Liquidity Reserve Fund will be funded through the Revenue Priority of Payments and Principal Priority of Payments.
To access ratings and relevant documents, click here.
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Related Publications
- UK Buy-to-Let RMBS: Stabilising Credit, Broadening Issuance
- UK RMBS Indices: Q2 2026
Methodologies
- RMBS: European RMBS Rating Methodology
- RMBS: European RMBS Rating Methodology Country Addendum: United Kingdom
- Structured Finance: Global Structured Finance Counterparty 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 First Floor, Marble Arch House, 66-68 Seymour Street, London W1H 5BT, United Kingdom.
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Contacts:
Analytical Contacts
Irfan Surti, Associate Director (Lead Analyst)
+44 20 8148 1079
irfan.surti@kbra.com
Hrishikesh Oturkar, Director
+44 20 8148 1070
hrishikesh.oturkar@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
