DBRS Morningstar Discontinues Credit Ratings on NewDay Partnership Funding 2020-1 plc

DBRS Ratings Limited (DBRS Morningstar) discontinued its ratings of the Class A3, Class B, Class C and Class D Notes (collectively, the Notes) issued by NewDay Partnership Funding 2020-1 plc.

The discontinuation reflects the full repayment of the Notes on 15 November 2023. Prior to the repayment, the ratings and the outstanding principal balances of the Notes were as follows:

-- Class A3 Notes at AAA (sf) Under Review with Negative Implications; GBP 259,000,000
-- Class B Notes at AA (sf) Under Review with Negative Implications; GBP 33,250,000
-- Class C Notes at A (sf) Under Review with Negative Implications; GBP 26,600,000
-- Class D Notes at BBB (high) (sf) Under Review with Negative Implications; GBP 12,600,000

Please refer to https://www.dbrsmorningstar.com/issuers/24810 for more information.

ENVIRONMENTAL, SOCIAL, GOVERNANCE CONSIDERATIONS
There were no Environmental/Social/Governance factors that had a significant or relevant effect on the credit analysis.

A description of how DBRS Morningstar considers ESG factors within the DBRS Morningstar analytical framework can be found in the DBRS Morningstar Criteria: Approach to Environmental, Social, and Governance Risk Factors in Credit Ratings at https://www.dbrsmorningstar.com/research/416784 (4 July 2023).

Notes:
All figures are in British pounds sterling unless otherwise noted.

The principal methodology applicable to the credit rating is “Master European Structured Finance Surveillance Methodology” (22 October 2023) https://www.dbrsmorningstar.com/research/422281/master-european-structured-finance-surveillance-methodology.

Other methodologies referenced in this transaction are listed at the end of this press release.

In DBRS Morningstar’s opinion, a discontinued-repaid credit rating action does not warrant the application of the entire principal methodology, as the Notes have been repaid in full.

For a more detailed discussion of the sovereign risk impact on Structured Finance credit ratings, please refer to “Appendix C: The Impact of Sovereign Ratings on Other DBRS Morningstar Credit Ratings” of the “Global Methodology for Rating Sovereign Governments” at: https://www.dbrsmorningstar.com/research/421590.

The DBRS Morningstar Sovereign group releases baseline macroeconomic scenarios for rated sovereigns. DBRS Morningstar analysis considered impacts consistent with the baseline scenarios as set forth in the following report: https://www.dbrsmorningstar.com/research/384482.

The sources of data and information used for these credit ratings include investor reports provided by NewDay Ltd.

DBRS Morningstar did not rely upon third-party due diligence in order to conduct its analysis.

At the time of the initial credit rating, DBRS Morningstar was supplied with third-party assessments. However, this did not impact the credit rating analysis.

DBRS Morningstar considers the data and information available to it for the purposes of providing these credit ratings to be of satisfactory quality.

DBRS Morningstar does not audit or independently verify the data or information it receives in connection with the credit rating process.

The last credit rating action on this transaction took place on 6 September 2023 when DBRS Morningstar maintained the Under Review with Negative Implications status of the Notes.

Information regarding DBRS Morningstar credit ratings, including definitions, policies, and methodologies, is available on www.dbrsmorningstar.com.

As this is a discontinued-repaid rating action, sensitivity analysis is not applicable.

These credit ratings were previously Under Review with Negative Implications. The conditions that led to the under review status are not yet resolved as of the date of this press release.

For further information on DBRS Morningstar historical default rates published by the European Securities and Markets Authority (ESMA) in a central repository, see: https://registers.esma.europa.eu/cerep-publication. For further information on DBRS Morningstar historical default rates published by the Financial Conduct Authority (FCA) in a central repository, see https://data.fca.org.uk/#/ceres/craStats.

These credit ratings are endorsed by DBRS Ratings GmbH for use in the European Union.

Lead Analyst: Jeffrey Cespon, Assistant Vice President
Rating Committee Chair: David Lautier, Senior Vice President
Initial Rating Date: 24 September 2020

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The credit rating methodologies used in the analysis of this transaction can be found at: https://www.dbrsmorningstar.com/about/methodologies.

-- Master European Structured Finance Surveillance Methodology (22 October 2023), https://www.dbrsmorningstar.com/research/422281/master-european-structured-finance-surveillance-methodology.

-- Rating European Consumer and Commercial Asset-Backed Securitisations (22 October 2023); https://www.dbrsmorningstar.com/research/422276/rating-european-consumer-and-commercial-asset-backed-securitisations.

-- Rating European Structured Finance Transactions Methodology (6 October 2023); https://www.dbrsmorningstar.com/research/421599/rating-european-structured-finance-transactions-methodology.

-- Legal Criteria for European Structured Finance Transactions (30 June 2023); https://www.dbrsmorningstar.com/research/416730/legal-criteria-for-european-structured-finance-transactions.

-- Interest Rate Stresses for European Structured Finance Transactions (15 September 2023); https://www.dbrsmorningstar.com/research/420602/interest-rate-stresses-for-european-structured-finance-transactions.

-- Operational Risk Assessment for European Structured Finance Servicers (15 September 2023); https://www.dbrsmorningstar.com/research/420572/operational-risk-assessment-for-european-structured-finance-servicers.

-- Operational Risk Assessment for European Structured Finance Originators (15 September 2023); https://www.dbrsmorningstar.com/research/420573/operational-risk-assessment-for-european-structured-finance-originators.

-- DBRS Morningstar Criteria: Approach to Environmental, Social, and Governance Risk Factors in Credit Ratings (4 July 2023); https://www.dbrsmorningstar.com/research/416784/dbrs-morningstar-criteria-approach-to-environmental-social-and-governance-risk-factors-in-credit-ratings.

A description of how DBRS Morningstar analyses structured finance transactions and how the methodologies are collectively applied can be found at: https://www.dbrsmorningstar.com/research/278375.

For more information on this credit or on this industry, visit www.dbrsmorningstar.com or contact us at [email protected].