New York, September 02, 2010 -- Replace "Washington Mutual Asset-Backed Certificates, WMABS
Series 2006-HE3 Trust " with "WaMu Mortgage Pass-Through
Certificates, WMABS Series 2006-HE1 Trust" under Affected
Transactions:
Moody's Investors Service stated that its ratings on the Moody's-rated
securities issued in connection with the below RMBS and ABS transactions
were not being downgraded or withdrawn solely as a result of the related
interest rate hedge agreement being transferred from The Royal Bank of
Scotland N.V. (rated A2/P-1) to The Royal Bank of
Scotland plc (rated Aa3/ P-1).
On or about September 1, 2010, The Royal Bank of Scotland
N.V., the old hedge counterparty, The Royal
Bank of Scotland plc, the hedge counterparty, and each trust's
respective trustee, will execute novation agreements with respect
to the interest hedges related to the below transactions. The novation
agreements effectively transfer all of The Royal Bank of Scotland N.V.
's rights and obligations under the interest rate hedge to The Royal Bank
of Scotland plc.
The Royal Bank of Scotland plc requested that Moody's provide its opinion
as to whether the ratings on the Moody's-rated securities issued
in the affected transactions would be downgraded or withdrawn as a result
of the novation of the interest rate hedges from The Royal Bank of Scotland
N.V. to The Royal Bank of Scotland plc.
Moody's believed that the novation of the interest rate hedges from The
Royal Bank of Scotland N.V. to The Royal Bank of Scotland
plc will not have an adverse effect on or result in withdrawal of the
ratings of the Moody's-rated securities. Moody's did not
express an opinion as to whether execution of the novation agreement could
have other, non credit-related effects that investors may
or may not view positively.
In assessing the credit impact of the novation agreements, Moody's
assessed the credit quality of the new hedge counterparty and reviewed
the novation agreements to determine whether it changed the obligations
of the hedge counterparty in any respect that could negatively affect
the credit quality of the rated securities. Moody's rating view
was based primarily on its opinion that The Royal Bank of Scotland plc
is a higher rated entity than The Royal Bank of Scotland N.V.
and that the novation agreements did not diminish the hedge counterparty's
obligations.
Other methodologies and factors that may have been considered in the process
of providing this opinion can be found at www.moodys.com
in the Rating Methodologies sub-directory under the Research &
Ratings tab.
Affected Transactions:
Bear Stearns Mortgage Funding Trust 2006-AR5
Bear Stearns Mortgage Funding Trust 2007-AR2, Mortgage Pass-Through
Certificates, Series 2007-AR2
First Franklin Mortgage Loan Trust 2006-FF17
First Franklin Mortgage Loan Trust 2006-FFB
First Franklin Mortgage Loan Trust 2006-FF11
First Franklin Mortgage Loan Trust 2006-FF5
Greenpoint Mortgage Funding Trust 2007-AR1
Greenpoint Mortgage Funding Trust 2007-AR2
Greenpoint Mortgage Funding Trust 2007-AR3
HSI Asset Securitization Corporation Trust 2006-HE2
HASCO 2006-WMC1
HSI Asset Securitization Corporation Trust 2007-NC1
Long Beach Mortgage Loan Trust 2006-4
Long Beach Mortgage Loan Trust 2006-5
Long Beach Mortgage Loan Trust 2006-WL2
Long Beach Mortgage Loan Trust 2006-WL3
Luminent Mortgage Trust 2007-2
Nomura Home Equity Loan, Inc. Home Equity Loan Trust,
Series 2007-1
RALI Series 2007-QH5 Trust
Structured Adjustable Rate Mortgage Loan Trust 2006-12
Structured Adjustable Rate Mortgage Loan Trust 2007-2
Structured Adjustable Rate Mortgage Loan Trust 2007-3
Structured Asset Mortgage Investments II Trust 2007-AR1
Structured Asset Securities Corporation 2007-GEL1
Structured Asset Securities Corporation 2007-GEL2
SASCO Reverse Mortgage Securities, Series 2007-RM1
Lehman XS Trust Series 2007-1
Lehman XS Trust 2007-10H
Lehman XS Trust Series 2007-14H
Lehman XS Trust, Series 2007-16N
Lehman XS Trust Mortgage Pass-Through Certificates, Series
2007-3
Lehman XS Trust Series 2007-7N
Lehman XS Trust Series 2007-9
Washington Mutual Mortgage Pass-Through Certificates, WMALT
Series 2007-OC2
Bear Stearns Asset Backed Securities I Trust 2007-FS1
Bear Stearns Asset Backed Securities I Trust 2007-HE1
Bear Stearns Asset Backed Securities I Trust 2007-HE2
Bear Stearns Asset Backed Securities I Trust 2007-HE5
Bear Stearns Asset Backed Securities I Trust 2006-AQ1
IndyMac Home Equity Mortgage Loan Asset-Backed Trust, Series
INABS 2006-E
WaMu Asset-Backed Certificates, WaMu Series 2007-HE2
Trust
WaMu Mortgage Pass-Through Certificates, WMABS Series 2006-HE1
Trust
GE Capital Credit Card Master Note Trust, Series 2007-2
CNH Equipment Trust 2007-B
Lehman Brothers Small Balance Commercial Mortgage Pass-Through
Certficates, Series 2006-3
Lehman Brothers Small Balance Commercial Mortgage Pass-Through
Certificates, Series 2007-2
Lehman Brothers Small Balance Commercial Mortgage Pass-Through
Certificates, Series 2007-3
New York
Ellis Shaffer
Associate Analyst
Structured Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653
New York
Linda Stesney
MD - Structured Finance
Structured Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653
Moody's Investors Service
250 Greenwich Street
New York, NY 10007
USA
Correction to text, September 1, 2010 Release: Moody's: No negative ratings impact from proposed transfer of hedges from The Royal Bank of Scotland N.V. (formerly known as ABN AMRO Bank N.V.) to The Royal Bank of Scotland plc