S&P Upgrades Rating

RNS Number:5363N
Paragon Group Of Companies PLC
14 July 2003


                    S&P UPGRADES RATING TO PARAGON

 
Standard & Poor's, the international credit rating agency, has upgraded its
rating for the #17 million junior notes in the Paragon Mortgages (No. 1) PLC
securitisation from single A+ to AA+, an increase of three credit notches and
only one notch below AAA. 


The upgrade is based on the excellent asset performance of the loan portfolio,
which Paragon believes reflects its tight underwriting standards and the credit
strength of its buy-to-let products.
 
The credit quality in the buy-to-let market generally is typically of a high
standard with its arrears being less than half of normal owner-occupied levels.
 

Sean Hannigan, credit analyst, at Standard & Poor's said: 

"The rating action has resulted from the sound performance of the underlying 
residential mortgages that make up the portfolios backing the notes"


A leading specialist lender concentrating on the buy-to-let market, Paragon
is one of the country's most frequent issuers of mortgage-backed securities,
having launched its first transaction in February 1987. Since then, assets
totalling some #7.5 billion have been securitised by Paragon in 40 public
transactions. 


This rating improvement follows the recent upgrade of Paragon Mortgages (No. 3)
PLC that continues the trend of upgrades on Paragon buy-to-let transactions. 
The Class A notes in all Paragon's transactions have been allocated the highest 
triple-A rating by the rating agencies.   
 


 
paragon 

Nigel Terrington, chief executive of The Paragon Group of Companies PLC, said:

 
"Paragon's buy-to let mortgage portfolio has consistently shown an
exemplary credit performance over many years and superior to standard owner
occupied mortgages.  We are delighted that the rating agencies recognise
the high credit quality of Paragon's buy-to-let mortgage programme."

 
For further information, please contact: 

Nigel Terrington, Chief Executive                John Wriglesworth 
Paragon Group of Companies                       The Wriglesworth Consultancy
Office: 0121 712 2024                             Office: 020 7620 2228  

  
NOTES TO EDITORS: 
 
Paragon
            
The Paragon Group of Companies PLC is one of the UK's largest independent
specialist lenders offering buy-to-let mortgages, personal loans, retail and
vehicle finance. The Group has approximately #5 billion of assets under
management. 

The Group acquired Britannic Money plc from Britannic Group plc on 30th June
2003 for a consideration, payable in cash, of #18.7 million. 


In its interim results for the six months ended 31 March 2003, pre-tax
profits rose 14.1% to #23.4 million (2002 H1: #20.5 million), with buy-to-let
mortgage advances up 37.9% to #330.9 million (2002 H1: #240.0 million) and
provision for losses down 14.6% to #8.8 million (2002 H1: #10.3 million). 



                      This information is provided by RNS
            The company news service from the London Stock Exchange

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