Fitch Affirms NRAM's Guaranteed Debt; Withdraws Rating
OREANDA-NEWS. Fitch Ratings has affirmed NRAM plc's GBP200m senior bonds maturing December 2019 (XS0101368818) 'AA+' rating. Fitch has simultaneously withdrawn the rating for commercial reasons. Accordingly, Fitch will no longer provide ratings for this or any other senior debt guaranteed by the UK government issued by NRAM plc or by NRAM (No 1).
KEY RATING DRIVERS
The senior unsecured debt rating assigned to the notes reflects Fitch's view that their default risk is materially the same as that of the UK sovereign (AA+/Stable). This is because of a public law guarantee, granted when NRAM was nationalised, guaranteeing NRAM's unsecured senior and unsubordinated Euro Medium Term Notes, as well as any accumulated interest on them.
On 30 April 2016, the issuer of the notes was substituted to NRAM (No 1), another subsidiary of UK Asset Resolution (UKAR) as part of the sale of certain assets and liabilities by NRAM plc to Cerberus European Residential Holdings BV. On 13 November 2015, HM Treasury confirmed that equivalent guarantee arrangements in respect of the original issuer's Euro Medium Term Notes (including the above rated senior note) apply on the same terms for the new issuer, NRAM (No 1) following its substitution as the notes' principal debtor.