S&P Asgns Prelim Rtgs in Northern Rock's UK RMBS Deal

Business Wire, August 29, 2002

Business Editors

LONDON--(BUSINESS WIRE)--Standard & Poor's

Aug. 29, 2002--Standard & Poor's Ratings Services said today that it assigned its preliminary credit ratings to the mortgage-backed floating-rate notes to be issued by Granite Mortgages 02-2 PLC (see list below).

The collateral backing the notes consists of a pool of first-ranking mortgages secured over freehold and leasehold properties located in England and Wales. All of the mortgages were originated and administered by Northern Rock PLC.

This is Northern Rock PLC's seventh securitization, and the fourth using its Master Trust set up in March 2001. The other securitizations in the Master Trust are Granite Mortgages 01-1 PLC, Granite Mortgages 01-2 PLC, and Granite Mortgages 02-1 PLC.

The preliminary credit ratings reflect the sound payment structure and cash flow mechanics of the transaction, a cash flow analysis to verify that the notes will be paid under stress test scenarios, and the sound legal structure of the transaction.

Another key consideration in the rating analysis is the strong protection for noteholders provided by a combination of the subordinate classes of notes, the cash reserve fund, and excess spread to cover credit losses and income shortfalls.

A copy of Standard & Poor's complete presale report for this transaction is available on RatingsDirect, Standard & Poor's Web-based credit analysis system, at www.ratingsdirect.com. The report is also available on Standard & Poor's Ratings Services Web site at www.standardandpoors.com. Under Presale Reports, select Structured Finance, then Residential Mortgage-Backed Securities.

Granite Mortgages 02-2 PLC
$1.78 Billion, EUR1.19 Billion, and GBP716.5 Million Mortgage-Backed
Floating-Rate Notes

Class          Rating       Amount (Mil.)
Series 1
A1             AAA          $600.0
A2             AAA        $1,050.0
B              AA            $60.0
C              BBB           $75.0
Series 2
A              AAA        EUR1,100.0
B              AA            EUR41.0
C              BBB           EUR50.0
Series 3
A              AAA          GBP660.0
B              AA            GBP25.0
C              BBB           GBP31.5

ANALYTICAL E-MAIL ADDRESSES
andre_vollmann@standardandpoors.com
StructuredFinanceEurope@standardandpoors.com

Copyright 2002, Standard & Poor's Ratings Services