Morningstar DBRS finalises ratings for Together UK commercial mortgage securitisation

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Morningstar DBRS ratings for Together UK

Highlights

Morningstar DBRS finalises provisional ratings for Together Asset Backed Securitisation 2026-1 CRE-6 PLC, assigning AAA (sf) to Loan Notes and Class A Notes, AA (high) (sf) to Class B Notes, A (high) (sf) to Class C, and BB (low) (sf) to Class X.
The securitisation pool comprises 73.8% fixed-rate loans reverting to floats and 26.2% floating-rate loans, hedged via fixed-to-floating swaps with HSBC Bank plc and NatWest Markets Plc.
A liquidity facility initially sized at 1.7% of Class A and Loan Notes covers senior expense and interest shortfalls, amortising as loans are repaid and supplemented post-step-up by a liquidity reserve fund.

Transaction structure and final ratings

As reported by Morningstar DBRS, the agency finalises provisional credit ratings for the bonds issued by Together Asset Backed Securitisation 2026-1 CRE-6 PLC, assigning AAA (sf) to the Loan Notes and Class A Notes, AA (high) (sf) to the Class B Notes, A (high) (sf) to the Class C Notes, and BB (low) (sf) to the Class X Notes. It does not rate the Class Z Notes or the residual certificates also issued in the transaction.

The securitisation is backed by mortgage loans originated by Together Commercial Finance Limited, part of Together Financial Group, a UK specialist property finance provider. The portfolio contains first- and second-lien loans secured by owner-occupied or non-owner-occupied commercial, mixed-use and residential properties across the UK.

The pool includes 73.8% fixed-rate loans that later revert to floating rates, while the remaining 26.2% pay a floating rate linked to the Together Commercial Managed Rate. To hedge the mismatch between fixed-rate assets and liabilities linked to Sterling Overnight Index Average, the issuer enters into two fixed-to-floating interest rate swaps with HSBC Bank plc and NatWest Markets Plc.

Liquidity protections and credit analysis implications

A liquidity facility is available from closing to cover shortfalls on senior expenses and interest payments on the Class A Notes, the Loan Notes and, when most senior, the Class B Notes. Its target is set at 1.7% of the Class A Notes and Loan Notes balance at closing, then amortises under the transaction terms, before falling to zero after the Class B Notes redeem in full.

After the step-up date, a liquidity reserve fund is funded through both principal and revenue waterfalls, with much of the support expected to come from principal receipts. Once that reserve starts building, the liquidity facility decreases so that the combined support remains at target, and the reserve is available for senior fees, servicing fees, swap payments and interest on the most senior classes.

Morningstar DBRS says its analysis considers the capital structure, available credit enhancement, portfolio credit quality, servicing capability, stressed cash flow assumptions, operational risk protections and the legal structure of the transaction. The agency also says no environmental, social or governance factors have a significant or relevant effect on the credit analysis, and that the ratings are based on data from Together and its representatives, including loan-level information as of 28 February 2026 and historical arrears, prepayment and repossession datasets.

Our earlier coverage of the final ratings on Together Asset Backed Securitisation 2026-1 CRE-6 PLC explained how the UK mortgage-backed deal is structured to broaden Together’s access to capital markets through securitised mortgage loan funding. We also highlighted that the notes were supported by credit enhancement and an established origination and servicing platform, with performance metrics viewed as consistent with comparable UK structured finance transactions.

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