Irish securitisation DILOSK RMBS NO.2 was mistakenly amortising its reserve fund until Moody's downgraded one of its tranches to junk earlier this month. Moody's reinstated the original rating once the originator said it would correct the error. Dilosk 2 was €286.4m when it was priced in 2018 and securitises Irish residential mortgages originated by non-bank lender DILOSK. Two weeks ago Moody's downgraded its Class D to Ba1 from Baa3, after being surprised to find that the deal's €8.595m general reserve fund had been amortising. Moody's had previously understood that this fund would not amortise as long as rated notes remained outstanding. When it realised the fund was being reduced it downgraded the Class D, as part of a review of four Irish RMBS.
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