KBRA Assigns Preliminary Ratings to Morglas ABS 2026-1 PLC

KBRA UK (KBRA) assigns preliminary ratings to seven classes of notes to be issued by Morglas ABS 2026-1 PLC (Morglas 2026-1), a UK consumer loan ABS backed by a static pool of unsecured, fixed rate, fully amortising personal loans originated by Admiral Financial Services Limited (AFSL).

Morglas 2026-1 will issue multiple classes of notes totalling £322.2 million. Initial credit enhancement is provided through subordination of junior note classes and a liquidity reserve sized at 1.25% of the Class A and Class B notes balance subject to a floor of £0.5 million. The transaction also benefits from excess spread.

Morglas 2026-1 represents the second public term ABS securitisation of AFSL-orginated loans. AFSL, trading as Admiral Money, is a UK-based lender established in 2014 as part of Admiral Group plc’s strategy to diversify earnings beyond its core insurance operations. Authorised and regulated by the Financial Conduct Authority, AFSL originates fully amortising, fixed-rate instalment loans with terms ranging from 12 to 96 months and balances between £1,000 and £40,000. Since inception, AFSL has originated over £4 billion of unsecured loans.

To access ratings and relevant documents, click here.

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Methodologies

• ABS: Consumer Loan ABS Global Rating Methodology
• Structured Finance: Global Structured Finance Counterparty Methodology

Disclosures

Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

This credit rating is endorsed by Kroll Bond Rating Agency Europe Limited for use in the European Union. Information on a credit rating’s endorsement status is available on its rating page at KBRA.com.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

There are certain issuers, entities or transactions rated by KBRA Europe or KBRA UK that may be or have relationships with Shareholders and/or Shareholder-Related Companies, as that term is defined in KBRA’s Shareholder and Shareholder Related Companies for KBRA Europe and KBRA UK Policy and Procedure. Relevant disclosure information may be found here.

About KBRA UK

Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S. Kroll Bond Rating Agency UK is located at 1st Floor, Marble Arch House, 66 Seymour Street, London W1H 5BT, England.

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Contact

Analytical Contacts

Irfan Surti, Associate Director (Lead Analyst)
+44 20 8148 1079
[email protected]

Christopher Noonan, Associate Director
+353 1 588 1225
[email protected]

Killian Walsh, Managing Director
+353 1 588 1184
[email protected]

John Hogan, Co-Head of Europe (Rating Committee Chair)
+353 1 588 1191
[email protected]

Business Development Contacts

Miten Amin, Managing Director
+44 20 8148 1002
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Mauricio Noé, Co-Head of Europe
+44 20 8148 1010
[email protected]