OREANDA-NEWS. Fitch Ratings has upgraded Money Partners Securities 1 Plc's (MPS1) class B1 notes (XS0226132198) to 'AA-sf' from 'Asf'. The Outlook is Stable. None of MPS1's other ratings are affected.

The transaction comprises a portfolio of non-conforming UK residential mortgages.

KEY RATING DRIVERS

Prior commentary relating to the rating of this class of notes erroneously stated that the credit enhancement (CE) is provided entirely by the reserve fund, which the agency now understands is not the case. As a result of the pay-down of the class B2 notes at the end of 2013, there is also an element of overcollateralisation providing support to the class B1 tranche.

Despite the CE available through overcollateralisation, further upgrade of the tranche is restricted by its subordinated position. The notes are backed by a small remaining pool that has historically underperformed the broader market.

However, the notes are still materially reliant on the CE provided by the reserve fund (accounting for two-thirds available CE). As the account bank, which holds the reserve fund, has been changed to HSBC (AA-/Stable/F1+), from Barclays (A/Stable/F1), the notes' rating have correspondingly been upgraded to 'AA-sf'.

The upgrade is therefore a direct result of the change in account bank and not due to the identification of the error.

RATING SENSITIVITIES

Given the reliance on the reserve fund, any further changes of account bank or changes to the account bank's rating are likely to have an effect on the note rating.

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.

-Loan-by-loan data provided by Kensington Mortgage Company as at 30 April 2016

-Transaction reporting provided by Kensington Mortgage Company as at 29 February 2016

-Discussions / updates from Kensington dated 7 June 2016