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Rating Action:

Moody's downgrades E-MAC NL 2003-I and E-MAC 2003-II Dutch RMBS

12 Jan 2010

Approximately EUR311 million and 8 classes of debt securities affected

Paris, January 12, 2010 -- Moody's Investors Service today downgraded the ratings of all the notes issued in the E-MAC NL 2003-I and E-MAC NL 2003-II transactions. The complete list of rating actions is included at the end of this press release.

E-MAC NL 2003-I

The downgrade of the E-MAC NL 2003-I notes follows the notice published on 5 January 2010 by the transaction's managing director that "not all of the rating agencies have confirmed the ratings currently assigned" to the notes and that, as a consequence, these notes are due to be redeemed in full on 25 January 2010 (their put date). Moody's believes that the transaction is now more likely to experience an enforcement event, given the uncertainties surrounding the ability of GMAC RFC Nederland B.V. (GMAC RFC NL, unrated) to provide funds for the notes to be redeemed. GMAC RFC NL is an indirect wholly-owned subsidiary of Residential Capital, LLC, which Moody's rates at its lowest rating of C, with a stable outlook.

Before the put date, the interest rate for each class of notes equals EURIBOR plus a specified initial margin. After the put date, the interest rate for each class of notes that remains outstanding will be subject to a new margin (referred to as an "extension margin") above EURIBOR, to be determined by reference to market quotations.

So long as no enforcement notice is served, the amount by which the post-put date interest exceeds the pre-put date interest (the step-up interest amount) will be subordinated in the priority of payments. However, upon enforcement, the step-up interest amount will no longer be subordinated and will therefore affect loss severity on all notes (see Moody's press releases on 16 June 2009, 10 July 2009 and also below for further details).

The 5 January notice stated that "the Extension Margin Agent was not able to determine Extension Margins" as at the determination date specified in the conditions of the notes. The conditions do not explicitly state whether the extension margins can be determined at a later date. Nevertheless, Moody's believes that it is most likely that the extension margins will be capable of late determination and that these margins will be determined at market-based levels much above current margin levels (i.e. similar to the extension margins that were determined for E-MAC 2002-I in July 2009).

Today's rating action is therefore similar to Moody's downgrade of all notes in the E-MAC 2002-I transaction on 10 July 2009, following the announcement that these were due to be redeemed. The notes in the E-MAC 2002-I transaction were redeemed at par on 27 July 2009.

If the E-MAC NL 2003-I notes fail to be redeemed on 25 January 2010, Moody's does not expect to further downgrade them as their ratings now reflect the full probability of this scenario and the rating review for this transaction is therefore concluded. However, given the uncertainties surrounding this transaction, Moody's may revisit its assumptions if definitive information becomes available.

E-MAC NL 2003-II

Today's downgrade and further review of the E-MAC NL 2003-II ratings reflect Moody's increased expectation that the notes will become subject to a mandatory redemption in October 2010. The E-MAC NL 2003-II transaction is exposed to the same risk of market-based step-up interest margins becoming unsubordinated in the priority of payments upon enforcement as the E-MAC NL 2003-I transaction. Moody's anticipates that its review of E-MAC NL 2003-II will conclude with further downgrades and ratings similar to those announced today for E-MAC NL 2003-I, if the notes fail to obtain rating confirmations in October 2010, prompting a mandatory redemption, and become exposed to step-up margins at levels similar to those that were determined for E-MAC NL 2002-I.

RATING HISTORY

On 18 June 2009, Moody's downgraded the ratings of the mezzanine and junior classes of notes in the E-MAC NL 2003-I and E-MAC NL 2003-II transactions. These actions reflected the uncertainty regarding the outcome of the outcome of the credit rating agencies' confirmation process. They also reflected the potential consequences of a mandatory redemption event given the priority of payment rules specific to these transactions that would make non-capped, market rate-based step-up interests unsubordinated in a post-enforcement scenario.

Moody's initially placed the ratings of all the notes in all the E-MAC NL non-NHG transactions issued prior to April 2008 on review for possible downgrade on 3 December 2008. This action was prompted by the transactions' exposure to the ability of GMAC RFC NL to fulfil its role as cash manager if it were to become insolvent. However, on 10 July 2009 back-up agreements for this role were entered into by the relevant parties and, as a consequence, on 10 July 2009, Moody's concluded its review and confirmed the ratings of all the notes in the non-NHG transactions, except those of the E-MAC NL 2002-I, E-MAC NL 2003-I and E-MAC NL 2003-II transactions.

Moody's ratings address the ultimate payment at par on or before the rated final legal maturity date and not the likelihood of timely payments under a mandatory redemption. Moody's ratings do not address the payment of the step-up component of the notes. Moody's ratings address only the credit risks associated with the transaction. Other risks have not been addressed, but may have a significant effect on yield to investors.

The principal methodology Moody's used in rating these transactions is described in the Rating Methodology reports: "Moody's Updated MILAN methodology for Rating Dutch RMBS", published on 16 March 2009, and "Cash Flow Analysis in EMEA RMBS: Testing Structural Features with the MARCO Model", published in January 2006, and available on www.moodys.com in the Rating Methodologies sub-directory under the Research & Ratings tab. Other methodologies and factors that may have been considered in the process of rating this issuer can also be found in the Rating Methodologies sub-directory on Moody's website. In addition, Moody's publishes a weekly summary of structured finance credit, ratings and methodologies in "Structured Finance Quick Check" at www.moodys.com/SFQuickCheck"

For further information, please refer to www.moodys.com or contact Moody's Client Service Desk on +44-20 7772 5454.

DETAILED LIST OF RATING ACTIONS

E-MAC NL 2003-I B.V.

- Class A, downgraded to Baa1; previously on 3 December 2008 placed under review for possible downgrade

- Class B, downgraded to Ca; previously on 18 June 2009 downgraded to A3 and maintained under review for possible downgrade

- Class C, downgraded to C; previously on 18 June 2009 downgraded to Ba1 and maintained under review for possible downgrade

- Class D, downgraded to C; previously on 18 June 2009 downgraded to B1 and maintained under review for possible downgrade

E-MAC NL 2003-I B.V.

- Class A, downgraded to Aa3 and maintained under review for possible downgrade; previously on 3 December 2008 placed under review for possible downgrade

- Class B, downgraded to Ba1 and maintained under review for possible downgrade; previously on 18 June 2009 downgraded to Baa1 and maintained under review for possible downgrade

- Class C, downgraded to B1 and maintained under review for possible downgrade; previously on 18 June 2009 downgraded to Ba1 and maintained under review for possible downgrade

- Class D, downgraded to Caa1 and maintained under review for possible downgrade; previously on 18 June 2009 downgraded to Ba2 and maintained under review for possible downgrade

Frankfurt
Marie-Jeanne Kerschkamp
Managing Director
Structured Finance Group
Moody's Deutschland GmbH
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454

Paris
Ariel Weil
Vice President - Senior Analyst
Structured Finance Group
Moody's France S.A.
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454

Moody's downgrades E-MAC NL 2003-I and E-MAC 2003-II Dutch RMBS
No Related Data.
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