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      FRIDAY, 05/08/2022 - Scope Ratings UK Ltd
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      Scope withdraws the ratings on the A to F tranches of Red 2 Finance CLO 2018-1 - CRE CLO

      All rated tranches have been fully repaid.

      Rating action

      Scope Ratings UK Limited (Scope) has today withdrawn the following ratings of Red 2 Finance CLO 2018-1, on the receipt of confirmation of repayment of all rated tranches. Rating actions are as follows:

      Tranche A: withdrawn from AAASF

      Tranche B: withdrawn from AAASF

      Tranche C: withdrawn from AAASF

      Tranche D: withdrawn from AAASF

      Tranche E: withdrawn from ASF

      Tranche F: withdrawn from BB+SF

      Tranche G: NR

      Red 2 Finance CLO 2018-1 (Red 2) is a synthetic securitisation of commercial real estate loans originated by Santander UK plc (Santander).

      The rating action incorporates information available from transaction reference registries and supplementary reports1 up to 20 July 2022.

      Rating rationale

      The rated notes were repaid in full, after the exercising of the clean up call option embedded in the agreement on 20 July 2022. The transaction has performed in line with Scope’s expectations since the initial rating’s assignment on 15 October 2018.

      Rating driver references
      1. Reference registry and supplementary report 20 July 2022 (Confidential)

      Stress testing
      No stress testing was performed.

      Cash flow analysis
      No cash flow analysis was performed.

      Methodology
      The methodologies used for these Credit Ratings (General Structured Finance Rating Methodology, 17 December 2021; Counterparty Risk Methodology, 14 July 2022), are available on https://scoperatings.com/governance-and-policies/rating-governance/methodologies.
      Information on the meaning of each Credit Rating category, including definitions of default, recoveries, Outlooks and Under Review, can be viewed in ‘Rating Definitions - Credit Ratings, Ancillary and Other Services’, published on https://www.scoperatings.com/governance-and-policies/rating-governance/definitions-and-scales. Historical default rates of the entities rated by Scope Ratings can be viewed in the Credit Rating performance report at https://scoperatings.com/governance-and-policies/regulatory/uk-regulation. A comprehensive clarification of Scope Ratings’ definitions of default and Credit Rating notations can be found at https://www.scoperatings.com/governance-and-policies/rating-governance/definitions-and-scales. Guidance and information on how environmental, social or governance factors (ESG factors) are incorporated into the Credit Rating can be found in the respective sections of the methodologies or guidance documents provided on https://scoperatings.com/governance-and-policies/rating-governance/methodologies.

      Solicitation, key sources and quality of information
      The Rated Entity and/or its Related Third Parties participated in the Credit Rating process.
      The following substantially material sources of information were used to prepare the Credit Ratings: public domain, the Rated Entity, the Rated Entities’ Related Third Parties, third parties and Scope Ratings’ internal sources.
      Scope Ratings considers the quality of information available to Scope Ratings on the Rated Entity or instrument to be satisfactory. The information and data supporting the Credit Ratings originate from sources Scope Ratings considers to be reliable and accurate. Scope Ratings does not, however, independently verify the reliability and accuracy of the information and data.
      Scope Ratings has received a third-party asset due diligence assessment/asset audit. The external due diligence assessment/asset audit was considered when preparing the Credit Ratings and it has no impact on the Credit Ratings.
      Prior to the issuance of the Credit Rating action, the Rated Entity was given the opportunity to review the Credit Ratings and the principal grounds on which the Credit Ratings are based. Following that review, the Credit Ratings were not amended before being issued.

      Regulatory disclosures
      These Credit Ratings are issued by Scope Ratings UK Limited at 52 Grosvenor Gardens, London, United Kingdom, SW1W 0AU, Tel +44 20 7824 5180. The Credit Ratings are EU-endorsed.
      Lead analyst: Mark Vrdoljak, Associate Director
      Person responsible for approval of the Credit Ratings: Benoit Vassuer, Executive Director
      The Credit Ratings were first released by Scope Ratings on 15 October 2018. The Credit Ratings were last updated on 5 October 2021.

      Potential conflicts
      See www.scoperatings.com under Governance & Policies/UK Regulation/Disclosures for a list of potential conflicts of interest related to the issuance of Credit Ratings.

      Conditions of use / exclusion of liability
      © 2022 Scope SE & Co. KGaA and all its subsidiaries including Scope Ratings GmbH, Scope Ratings UK Limited, Scope Fund Analysis GmbH, Scope Innovation Lab and Scope ESG Analysis GmbH (collectively, Scope). All rights reserved. The information and data supporting Scope’s ratings, rating reports, rating opinions and related research and credit opinions originate from sources Scope considers to be reliable and accurate. Scope does not, however, independently verify the reliability and accuracy of the information and data. Scope’s ratings, rating reports, rating opinions, or related research and credit opinions are provided ‘as is’ without any representation or warranty of any kind. In no circumstance shall Scope or its directors, officers, employees and other representatives be liable to any party for any direct, indirect, incidental or other damages, expenses of any kind, or losses arising from any use of Scope’s ratings, rating reports, rating opinions, related research or credit opinions. Ratings and other related credit opinions issued by Scope are, and have to be viewed by any party as, opinions on relative credit risk and not a statement of fact or recommendation to purchase, hold or sell securities. Past performance does not necessarily predict future results. Any report issued by Scope is not a prospectus or similar document related to a debt security or issuing entity. Scope issues credit ratings and related research and opinions with the understanding and expectation that parties using them will assess independently the suitability of each security for investment or transaction purposes. Scope’s credit ratings address relative credit risk, they do not address other risks such as market, liquidity, legal, or volatility. The information and data included herein is protected by copyright and other laws. To reproduce, transmit, transfer, disseminate, translate, resell, or store for subsequent use for any such purpose the information and data contained herein, contact Scope Ratings GmbH at Lennéstraße 5 D-10785 Berlin. 

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