OREANDA-NEWS. Fitch Ratings is maintaining Kensington Mortgage Company Limited's (KM) 'RSS2+' UK Residential Special Servicer Rating on Rating Watch Evolving (RWE).

The rating has been on RWE since 19 September 2014 following the announcement that Investec had agreed to sell KM to Blackstone Tactical Opportunities Advisors L.L.C. (Blackstone) and TPG Special Situations Partners (TSSP). The RWE reflects the uncertainties surrounding the impact of the change of ownership, specifically, financial and strategic support, internal audit, senior management, and HR and training resource.

Blackstone and TSSP completed the purchase of KM on 31 January 2015. Since the completion Fitch has not become aware of any material way in which the business has changed. However, to resolve the RWE Fitch needs to ascertain the financial commitment of the new owners to establishing future support for KM and the impact on operational strategies, business performance, technology infrastructure and loan performance.

Since the RWE was placed on the rating Fitch has become aware that Blackstone and TSSP have agreed to purchase Acenden Limited (RPS2+ Prime and Sub-prime, RSS2 both on RWE), subject to regulatory approval. The agency believes that there is potential synergy between KM and Acenden and will assess if any operational changes come about as a result of having a shared parent.

The RWE will remain in place for a further three months at which time Fitch will conduct a further assessment of its impact which, depending on the outcome, could result in an upgrade, affirmation or downgrade of the servicer rating.

KM's portfolio of assets under management decreased to GBP2.71bn at end-January 2015 from GBP2.94bn end-March 2014.