DBRS Confirms Classes A1 - A3 from Phoenix Funding 5 Limited

DBRS Ratings Limited (DBRS) has confirmed the ratings on the Class A1, Class A2 and Class A3 Notes at ‘A’ (high) (sf). Additionally, DBRS removed the Class A1, Class A2 and Class A3 Notes from Under Review with Negative Implications following the confirmation of the Republic of Ireland (see “DBRS Confirms Ireland at A (low) with Negative Trend”, published on August 8, 2012). Since closing there has been only one payment date and there has been negligible movement in the arrears profile of the asset pool.

The rating confirmation is based upon the following analytical considerations:

• The transaction is performing within DBRS expectations and available credit enhancement is sufficient to cover DBRS expected losses.
• The transaction parties’ financial strength and capabilities to perform their respective duties, and the quality of origination, underwriting and servicing practices.
• The credit quality of the collateral and ability of the Servicer to perform collection activities on the collateral.
• The ability of the transaction to withstand stressed cash flow assumptions and repay investors according to the terms of the transaction documents.
• Transaction triggers that may change cash flow allocations or cause the replacement of key entities within the transaction structure.

Note:
The principal methodologies applicable are:
• Master European Structured Finance Surveillance Methodology
• Master European Residential Mortgage-Backed Securities Rating Methodology
• Legal Criteria for European Structured Finance Transactions
• Operational Risk Assessment for European RMBS Servicers
• Unified Interest Rate Model Methodology for European Securitisations

These can be found on dbrs.com under Methodologies. For a more detailed discussion of sovereign risk impact on Structured Finance ratings, please refer to DBRS commentary “The Effect of Sovereign Risk on Securitisations in the Euro Area”.

The sources of information used for this rating include monthly remittance reports and data relating to the underlying mortgages provided by KBC Bank Ireland Plc. DBRS considers the information available to it for the purposes of this rating action was of satisfactory quality.

Ratings assigned by DBRS Ratings Limited are subject to EU regulations only.

For additional information on this rating, please see the linking document.

Lead Analyst and Lead Surveillance Analyst: Alastair Bigley
Rating Committee Chair: Claire Mezzanotte
Initial Rating Date: June 6, 2012