The SQ ratings are opinions of the agency regarding the ability of a loan servicer to prevent or mitigate losses in a securitisation.
Moody’s explained that the “SQ2 rating reflects HML's strengths in terms of management, strategy, professional operations as well as IT systems and financial stability”.
HML’s development director, Paul Fenn, commented: “We’re delighted to have passed Moody’s annual review with flying colours. HML is in a phase of strong growth, with an increase in the size of our servicing book in excess of 16 per cent over the past year. It’s gratifying that Moody’s recognise that we’ve kept our eye on the ball and continue to provide a quality service to our clients.”
Moody’s highlighted the standard of HML’s servicing guidelines and control practices, and praised its coherent business model. Moody’s also emphasised how HML benefits from an experienced management team and well-trained and motivated staff.
The Moody’s rating came on top of the confirmation of servicer ratings by international rating agency Fitch earlier this year. Following an in-depth review, Fitch affirmed their RPS2+UK(Prime) and RPS2+UK(Non-conforming) residential mortgage primary servicer ratings awarded to HML – the highest rating awarded to any UK residential servicer.
Fenn concluded: “Third party endorsements from respected rating agencies such as Moody’s and Fitch are vital to our ability to continue to grow HML’s business over the coming years.”
