Fitch: No Rating Impact on Langton Master Trust From Restructure

Dec 6 (Reuters) - (The following statement was released by the rating agency)

Fitch Ratings says that there is no rating impact on Langton Master Trust's outstanding notes (rated 'AAAsf') from a restructuring. The restructuring involved extending the call dates and margin step-up dates on six rated notes and two unrated notes as listed below:

Langton Securities (2010-1) plc Series 2010-1: tranches A5, A9, Z1 and Z2

Langton Securities (2010-2) plc Series 2010-2: tranches A3

Langton Securities (2008-1) plc Series 2011-1: tranches A1, A2, and A7

The restructuring also involved a slight reduction on the margins paid on the cross currency swaps for the two euro-denominated notes, 2010-2 A3 and 2011-1 A1.

The notes are backed by UK mortgage loans historically originated by Abbey (LSE: ABBY.L - news) National plc and following the Part VII scheme effected in May 2010, mortgage loans originated by Santander UK plc (Santander; A/Stable/F1). Santander is a wholly-owned subsidiary of Banco Santander SA (BBB+/Stable/F2) Following the restructuring, credit enhancement for the class A notes is unchanged at 20.23% for series 2010-1, 20.22% for the series 2010-2 and 20.50% for the series 2011-1 provided by the subordination of the unrated class Z notes, as well as fully funded issuer reserve funds for each issue outstanding. The class A notes also benefit from a proportionate share of the Funding reserve fund of GBP20.45m. Fitch did not take into account the Funding 1 reserve fund in the above CE.

Although arrears have shown an increasing trend over the past year, the percentage of loans that are in arrears by three months or more is still low, at 1.83% of the current outstanding collateral balance.