Approximately EUR31.4 billion of securities affected.
London, 10 March 2011 -- Moody's Investors Service today downgraded the ratings of 50 tranches
in 17 prime Irish residential mortgage-backed securities (RMBS).
Moody's maintains the ratings on 16 tranches on review for possible
downgrade pending the conclusion of Moody's review of its ratings
on Irish banks and the implementation of a variety of proposals by the
transactions' sponsors including, the implementation of structural
changes to mitigate operational risks and/or increasing credit enhancement.
RATINGS RATIONALE
Today's rating actions are due principally to the weak and rapidly
deteriorating performance of the collateral as a result of the weakened
macro-economic environment and the increased operational risks
linked to the weaker credit quality of Irish banks acting as key transaction
parties. On 11 February 2011, Moody's announced that
top-rated notes of Irish RMBS transactions would suffer multi-notch
downgrades as a result of rating actions taken on most of the Irish bank
ratings.
The difference in the magnitude of rating actions on the senior notes
of the various Irish RMBS is due to the significant difference in the
amount of credit enhancement available within each transaction to withstand
Moody's updated loss assumptions. Moody's downgraded
seventeen of the senior notes from Aaa (sf) to the A (sf) range,
nine senior notes to the Aa (sf) range, six senior notes to the
Baa (sf) range and one to Ba2 (sf). The downgrade of the senior
notes in Wolfhound 2008-1 to Ba2 (sf) from Aaa (sf) reflects the
low credit enhancement at 9.3% of note balance compared
to a revised loss assumption of 8.0% of current pool balance.
Among the mezzanine and junior notes, Moody's has downgraded
sixteen tranches to below investment grade.
As previously expressed in a Moody's press release dated 2 December
2010, we believe that due to Ireland's increasingly uncertain
economic situation and pending rating actions on the banking sector in
Ireland, Aaa (sf) ratings are not currently achievable in Ireland
for most structured finance transactions, independent of the credit
enhancement available. Aa1(sf) is currently achievable for transactions
that can sustain high stressed scenarios, thanks to a combination
of very high level of credit enhancement and low exposure to operational
risks.
KEY COLLATERAL ASSUMPTIONS REVISED
Moody's increased its lifetime expected loss assumptions to a range
of 3.5% to 13.0% of the current pool balance
for the Irish RMBS reviewed. The prior range was 0.6%
to 8.0% of the original balance. In setting its collateral
loss assumptions Moody's considered arrears and potential loss severities
in light of the composition of the collateral portfolio.
As of December 2010, the 90 plus days arrears in Moody's rated
transactions have gradually increased to 5.7% of pool balance
from 2.9% from a year earlier, as shown in Moody's
latest indices for Irish RMBS published mid January. Moody's anticipates
further deterioration in the performance of Irish pools of residential
mortgage loans. Please see the Special Comment entitled "Key credit
drivers of Irish mortgage borrower default" published on 1st December
2010 for a detailed discussion of the evolution of the economic stress
on Irish borrowers.
The rating agency expects arrears levels to continue to rise through 2011
and to remain at elevated levels for several years. Increasing
unemployment and lower incomes arising from the austerity measures will
continue to hurt borrowers' ability to fulfil their financial obligations.
Irish borrowers would also be affected negatively by interest rate increase
as mortgage loans are predominantly floating rate. In addition
to higher arrears, loss severities will rise as the proportion of
loans in negative equity increases, the range is currently 7%
to 60% depending on the transaction. Losses will also increase
as a result of the oversupply of housing, lack of refinancing causing
fewer sales and a further decline in house prices, expected to be
equal to approximately 45% decline from peak to trough in the base
case. In Moody's view lenders will continue to avoid recognizing
these losses by offering more loan modifications going forward,
reflecting lenders' and regulator's limited appetite to enforce
on highly delinquent loans.
Many of the pools in the RMBS rated by us have above-average risk
features compared to the Irish mortgage market. Moody's notes
that 12 of the 18 transactions have weighted average indexed loan-to-value
(LTV) ratios of greater than 100 percent. Since mortgages for buy-to-let
(BTL) properties are riskier than mortgages for owner-occupied
properties, the collateral portfolios with high concentrations of
BTL, such as Fastnet Securities 8 Ltd, saw the biggest increases
in expected loss assumptions.
Moody's revised the MILAN Credit Enhancement (CE) assumptions considering
the likely performance of pools during severe stress scenarios including
restructuring of government debt, systemic banking crisis and more
severe version of the current austerity plan. MILAN CE have been
revised and are now ranging from 17.5% to 40%.
OPERATIONAL RISKS
Following the recent downgrade of Irish banks to mostly below investment
grade levels, operational risk exposure is a key consideration in
determining the ultimate rating levels achievable on each Irish RMBS transaction.
Specifically, Moody's assessed the risk of a disruption in
the performance of one of the key transaction parties. The rating
agency evaluated the credit worthiness of the key entities in each transaction
that act as the servicer, cash manager, or account bank.
Moody's also considered the strength of the structural features,
such as back-up arrangements, that help provide for a successor
in the event of a disruption.
The degree of linkage of ratings of the senior tranches of the Irish RMBS
ratings with the credit quality of the key transaction parties vary from
moderate to high depending on the strength of operational risks mitigants
that are in place in each the various transactions. Some of the
Irish RMBS ratings remain on review for possible downgrade pending the
implementation of restructurings proposed by sponsors and Moody's
review of Irish bank ratings.
A detailed list of affected transactions and debt list is provided at
the end of the press release.
KEY RATING RATIONALE PER TRANSACTIONS
MOODY'S RATED CELTIC TRANSACTIONS (CELTIC No. 9, 10,
11, 12, 13 and 16)
Ulster Bank Ireland (A2/P-1) originated these transactions between
November 2005 and April 2010. The main driver for the downgrades
of the most senior notes in Celtic 11 (Aa1 (sf)), Celtic 12 (Aa2
(sf)), Celtic 13 (Aa2 (sf)) and Celtic 16 (Aa2 (sf)) was Moody's
view that Aaa (sf) is not achievable in the current environment because
of the exposure of these transactions to systemic country risk and the
impact of sovereign and banking stress in Ireland in severe stress scenarios.
Celtic 9 and Celtic 10 had multi-notch downgrades to their senior
notes to A3 (sf) and Baa2 (sf), respectively, mainly as a
result of the worsening performance of their portfolios.
Operational Risk -- Ulster Bank Ireland is the servicer and cash
manager for all transactions.
Key Collateral Assumptions -- Moody's has increased its expected
loss assumptions (EL) considering that the 90 plus days arrears levels
have doubled on the Celtic transactions originated prior to 2010.
Since Celtic 11 and Celtic 13 are among the better performers of the Celtic
series (90 plus days arrears levels of 4.3% and 5%
of current balance, respectively), their loss assumptions
are lower than other Celtic transactions. Celtic 16, although
a relatively new transaction, has a very high proportion on non-owner
occupied loans 66% and therefore a higher expected loss assumption.
Moody's revised the MILAN Aaa CE assumptions (MILAN) for all the
transactions to incorporate additional stress scenarios to take into account
systemic country risk and the impact of sovereign and banking stress in
Ireland.
Celtic 9, EL revised to 2.9% of original balance (5.5%
of current balance), MILAN to 24%
Celtic 10, EL revised to 3.7% of original balance
(6% of current balance), MILAN to 24%
Celtic 11, EL revised to 2.7% of original balance
(4% of current balance), MILAN to 20%
Celtic 12, EL revised to 4.6% of original balance
(6.5% of current balance), MILAN to 26%
Celtic 13, EL revised to 3.6% of original balance
(4.5% of current balance), MILAN to 22.5%
Celtic 16, EL revised to 12.7% of original balance
(13% of current balance), MILAN to 39%.
EMERALD MORTGAGES No. 4
EBS Building Society (Ba2, under review for possible downgrade)
originated this RMBS transaction. Weak collateral performance is
the main driver of the rating downgrade for the senior notes to Baa1 (sf)
and the multi-notch downgrade on the mezzanine and junior notes.
Operational Risk -- EBS Building Society is the servicer and cash
manager for this transaction and is in the process of amending the transaction
documentation to incorporate back-up arrangements.
Key Collateral Assumptions - Moody's has increased its expected
loss assumption (EL) to 2.6% of the original balance of
the loans (4% of current balance) as a result of the worse-than-expected
performance of the pool. Currently reports show 5% of the
pool with arrears levels of 90 plus days (15% up from one year
ago), including 2% of the current balance, which are
360 plus days in arrears. Moody's revised the MILAN Aaa CE
assumption (MILAN) to 20% to incorporate additional stress scenarios
to take into account systemic country risk and the impact of sovereign
and banking stress in Ireland.
MOODY'S RATED FASTNET TRANSACTIONS (FASTNET No. 2,
4, 5, 7 and 8)
Irish Life & Permanent plc (Ba2, under review for possible downgrade)
originated these transactions. The high linkage to Irish Life &
Permanent as the servicer and cash manager is the main driver in the ratings
downgrade for the senior notes in Fastnet 4 to A1 (sf), under review
for possible downgrade; Fastnet 5 A1 (sf), under review for
possible downgrade; Fastnet 7 A3 (sf) under review; and Fastnet
8 A1 (sf), under review for possible downgrade. Moody's
downgraded the senior notes in Fastnet 2 to A3 (sf), under review
for possible downgrade, primarily for performance reasons.
However, all the senior notes in these transactions remain on review
for possible downgrade pending the outcome of a proposal by the issuers
to mitigate operational risk and Moody's review of the ratings of
Irish banks.
Operational Risk -- Currently, no back-up arrangements
are in place for either the servicing or cash management. Irish
Life & Permanent plc informed Moody's that it is in the process
of amending the transaction documentation to introduce back-up
parties and other structural features to address operational risk concerns.
Key Collateral Assumptions - Moody's has increased its expected
loss assumptions (EL) in all five of these Fastnet transactions as a result
of their weak performance. Moody's believes that Fastnet
7 and Fastnet 8 will suffer the greatest level of losses of the Fastnet
transactions as they both have weighted average indexed LTVs of greater
than 100%. Moody's revised the MILAN Aaa CE assumptions
(MILAN) for all five Fastnet transactions. Fastnet 4 has the lowest
credit enhancement assumption as a result of the significantly lower weighted
average indexed LTV of the portfolio (75% compared to 118%
in Fastnet 8). Fastnet 7 and 8 have the highest credit enhancement
assumptions as a result of the high level of non-owner occupied
loans in the portfolio (over 70% in both pools at close).
Fastnet 2, EL revised to 3.2% of original balance
(5% of current balance), MILAN to 22.5%
Fastnet 4, EL revised to 2.8% of original balance
(3.5% of current balance), MILAN to 17.5%
Fastnet 5, EL revised to 5.2% of original balance
(6% of current balance), MILAN to 24%
Fastnet 7, EL revised to 12.3% of original balance
(13% of current balance), MILAN to 40%
Fastnet 8, EL revised to 12.6% of original balance
(13% of current balance), MILAN to 39%.
KILDARE SECURITIES
ICS Building Society (Deposit Rating Baa3, under review for possible
downgrade/P-3, under review for possible downgrade),
which is a subsidiary of Bank of Ireland (Ba1, under review for
possible downgrade), originated this transaction. The main
driver for the multi-notch downgrade of the senior note to A3 (sf),
under review for possible downgrade, is the strong degree of linkage
between the transaction and ICS Building Society. Therefore the
senior notes remain on review pending the outcome of Moody's review
of Irish banks as they are sensitive to a downgrade of the ratings of
ICS Building Society.
Operational Risk -- ICS Building Society is both the servicer and
cash manager and there are no back-up arrangements in place.
Key Collateral Assumptions -- Moody's has increased its expected
loss assumption (EL) in this transaction to 2.4% of original
balance (4% of current balance). This assumption is at the
lower end of the range for the revised EL of the Irish RMBS as a result
of the comparatively low level of arrears (3.1% of current
balance that is 90 plus days in arrears compared with 5.7%
for the Irish Prime RMBS index). Moody's increased the MILAN
Aaa CE assumption (MILAN) for this transaction to 20% in order
to incorporate additional stress scenarios to take into account systemic
country risk and the impact of sovereign and banking stress in Ireland.
MOODY'S RATED PHOENIX FUNDING TRANSACTIONS (Phoenix No. 2,
3, and 4)
KBC Bank Ireland plc (Baa3/P-3 a subsidiary of KBC Bank N.V.
(Aa3/P-1)) originated these transactions. The main driver
for the downgrades in Phoenix 3 and 4 is expected performance as demonstrated
by the significant increase in arrears levels (at least 7% of their
current portfolios are 30 days plus in arrears). The sponsor of
the transactions has informed Moody's that for all three transactions
they will increase credit enhancement and implement structural changes
to mitigate operational risk. The current rating levels incorporate
the benefit of those restructuring and the ratings remain on review pending
the implementation of these changes.
Operational Risk -- KBC Bank Ireland plc is the servicer and cash
manager for all three of these Phoenix transactions. There are
no back up servicers nor back up cash managers in place, though
Phoenix 3 and 4 do have rating triggers for appointing substitute parties.
KBC Ireland plc informed Moody's that it is in the process of amending
the transaction documentation to address operational risk concerns.
Key Collateral Assumptions -- Moody's has increased its expected
loss assumptions (EL) in all three transactions as a result of worse-than-expected
performance in all three pools. Phoenix 2 has the highest expected
loss assumption of these transactions as it has the highest level of 90
days plus in arrears (7% of current balance versus 6.2%
in Phoenix 3 and 3.5% in Phoenix 4) and also has the highest
weighted average indexed LTV (117%). Moody's revised
the MILAN Aaa CE assumptions (MILAN) for all the transactions taking into
consideration the fact that all three transactions have at least 20%
of buy-to-let loans in their respective pools and the additional
stress scenarios to take into account systemic country risk.
Phoenix 2, EL revised to 7.2% of original balance
(8.0% of current balance), MILAN to 32%
Phoenix 3, EL revised to 6.3% of original balance
(7.0% of current balance), MILAN to 28%
Phoenix 4, EL revised to 6.6% of original balance
(7.0% of current balance), MILAN to 28%.
WOLFHOUND TRANSACTIONS (2008-1, and No. 2)
Bank of Scotland Ireland (not rated, a subsidiary of Bank of Scotland
plc (Aa3)) originated these transactions. Moody's has downgraded
the senior notes in both transactions due to performance concerns and
the lack of sufficient enhancement needed to withstand both severe and
expected loss scenarios given the combination of high arrears levels and
the portfolio composition (over 15% of BTL in both pools).
Operational Risk -- Bank of Scotland plc is the servicer and cash
manager for these transactions.
Key Collateral Assumptions -- Moody's has increased its expected
loss assumptions (EL) for both transactions due to weak collateral performance.
Moody's revised the MILAN Aaa CE assumptions (MILAN) for both transactions
because of the level of BTL loans in both pools (over 15%) and
the additional stress scenarios to take into account systemic country
risk.
Wolfhound 2008-1, EL revised to 7.6% of original
balance (8% current balance), MILAN to 33%
Wolfhound No2, EL revised to 7.8% of original balance
(8% current balance), MILAN to 33%.
The principal methodologies used in this rating were "Moody's MILAN
Methodology for Rating Irish RMBS" (April 2009), "Revising
Default/Loss Assumptions Over the Life of an ABS/RMBS Transaction"
(December 2008) and "Global Structured Finance Operational Risk
Guidelines: Moody's Approach to Analyzing Performance Disruption
Risk" (March 2011). 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.
Please also refer to the "Irish RMBS December 2010 Indices", which
is available on www.moodys.com in the Industry / Sector
Research sub-directory under the Research & Ratings tab.
Moody's Investors Service did not receive or take into account a third-party
due diligence report on the underlying assets or financial instruments
related to the monitoring of this transaction in the past six months.
REGULATORY DISCLOSURES
The ratings of Phoenix Funding No 2, 3 and 4 have been disclosed
to the rated entities or their designated agents and issued with amendment
resulting from that disclosure following new information provided by the
transaction sponsor to Moody's regarding a restructuring of the
transactions.
All other ratings have been disclosed to the rated entities or their designated
agents and issued with no amendment resulting from that disclosure.
Information sources used to prepare the credit ratings are the following:
parties involved in the ratings, parties not involved in the ratings,
public information, and confidential and proprietary Moody's Investors
Service information.
Moody's Investors Service considers the quality of information available
on the issuer or obligation satisfactory for the purpose of maintaining
credit ratings.
LIST OF RATING ACTIONS:
Issuer: Celtic Residential Irish Mortgage Securitisation No.9
Plc
....EUR1067.5M A2 Certificate,
Downgraded to A3 (sf); previously on Jul 23, 2010 Aaa (sf)
Placed Under Review for Possible Downgrade
....EUR70M B Certificate, Downgraded
to Caa2 (sf); previously on Jul 23, 2010 A2 (sf) Placed Under
Review for Possible Downgrade
Issuer: CELTIC RESIDENTIAL IRISH MORTGAGE SECURISATION NO.
10 PLC
....EUR1253M A2 Certificate, Downgraded
to Baa2 (sf); previously on Jul 23, 2010 Aaa (sf) Placed Under
Review for Possible Downgrade
....EUR89.5M B Certificate, Downgraded
to Caa2 (sf); previously on Jul 23, 2010 A2 (sf) Placed Under
Review for Possible Downgrade
Issuer: CELTIC RESIDENTIAL IRISH MORTGAGE SECURISATION NO.
11 PLC
....EUR385M A2a Certificate, Downgraded
to Aa1 (sf); previously on Dec 2, 2010 Aaa (sf) Placed Under
Review for Possible Downgrade
....US$328M A2b Certificate,
Downgraded to Aa1 (sf); previously on Dec 2, 2010 Aaa (sf)
Placed Under Review for Possible Downgrade
....EUR1388.8M A3a Certificate,
Downgraded to A3 (sf); previously on Jul 23, 2010 Aaa (sf)
Placed Under Review for Possible Downgrade
....GBP586M A3c Certificate, Downgraded
to A3 (sf); previously on Jul 23, 2010 Aaa (sf) Placed Under
Review for Possible Downgrade
....EUR77M Ba Certificate, Downgraded
to Ba3 (sf); previously on Jul 23, 2010 Aa2 (sf) Placed Under
Review for Possible Downgrade
....EUR147.4M Ca Certificate,
Downgraded to Caa2 (sf); previously on Jul 23, 2010 Baa2 (sf)
Placed Under Review for Possible Downgrade
....GBP17.5M Cc Certificate,
Downgraded to Caa2 (sf); previously on Jul 23, 2010 Baa2 (sf)
Placed Under Review for Possible Downgrade
Issuer: Celtic Residential Irish Mortgage Securitisation No.12
Ltd.
....EUR487.5M A2 Notes, Downgraded
to Aa2 (sf); previously on Dec 2, 2010 Aaa (sf) Placed Under
Review for Possible Downgrade
....EUR1010.685M A3 Notes, Downgraded
to Baa3 (sf); previously on Oct 14, 2010 Aa2 (sf) Placed Under
Review for Possible Downgrade
....EUR39M B Notes, Downgraded to Caa1
(sf); previously on Dec 2, 2010 Baa1 (sf) Placed Under Review
for Possible Downgrade
....EUR87.75M C Notes, Downgraded
to Caa3 (sf); previously on Dec 2, 2010 B3 (sf) Placed Under
Review for Possible Downgrade
Issuer: Celtic Residential Irish Mortgage Securitisation No.
13 Ltd
....EUR538.95M A2 Certificate,
Downgraded to Aa2 (sf); previously on Oct 14, 2010 Aaa (sf)
Placed Under Review for Possible Downgrade
....EUR938.2M A3 Certificate,
Downgraded to A3 (sf); previously on Jul 23, 2010 Aaa (sf)
Placed Under Review for Possible Downgrade
....EUR101.8M B Certificate,
Downgraded to Ba3 (sf); previously on Jul 23, 2010 Aa3 (sf)
Placed Under Review for Possible Downgrade
....EUR47.9M C Certificate, Downgraded
to Caa2 (sf); previously on Jul 23, 2010 Baa2 (sf) Placed Under
Review for Possible Downgrade
Issuer: CELTIC RESIDENTIAL IRISH MORTGAGE SECURITISATION NO.
16 LTD
....EUR260M A1 Certificate, Downgraded
to Aa2 (sf); previously on Dec 2, 2010 Aaa (sf) Placed Under
Review for Possible Downgrade
....EUR260M A2 Certificate, Downgraded
to Aa2 (sf); previously on Dec 2, 2010 Aaa (sf) Placed Under
Review for Possible Downgrade
....EUR257M A3 Certificate, Downgraded
to Aa2 (sf); previously on Dec 2, 2010 Aaa (sf) Placed Under
Review for Possible Downgrade
Issuer: Emerald Mortgages No. 4 p.l.c.
....EUR1428M A Notes, Downgraded to
Baa1 (sf); previously on Jul 23, 2010 Aaa (sf) Placed Under
Review for Possible Downgrade
....EUR34.5M B Notes, Downgraded
to B1 (sf); previously on Jul 23, 2010 Aa3 (sf) Placed Under
Review for Possible Downgrade
....EUR37.5M C Notes, Downgraded
to Caa3 (sf); previously on Jul 23, 2010 Baa2 (sf) Placed Under
Review for Possible Downgrade
Issuer: Fastnet Securities 2 PLC
....EUR1656M A2 Certificate, Downgraded
to A3 (sf) and Remains On Review for Possible Downgrade; previously
on Oct 14, 2010 Aaa (sf) Placed Under Review for Possible Downgrade
....EUR50M B Certificate, Downgraded
to Ba2 (sf); previously on Oct 14, 2010 Aa3 (sf) Placed Under
Review for Possible Downgrade
....EUR44M C Certificate, Downgraded
to B1 (sf); previously on Oct 14, 2010 A2 (sf) Placed Under
Review for Possible Downgrade
....EUR56M D Certificate, Downgraded
to Caa2 (sf); previously on Oct 14, 2010 Baa2 (sf) Placed Under
Review for Possible Downgrade
Issuer: Fastnet Securities 4 Ltd
....EUR2080M A1 Certificate, Downgraded
to A1 (sf) and Remains On Review for Possible Downgrade; previously
on Jul 23, 2010 Aaa (sf) Placed Under Review for Possible Downgrade
....EUR2080M A2 Certificate, Downgraded
to A1 (sf) and Remains On Review for Possible Downgrade; previously
on Jul 23, 2010 Aaa (sf) Placed Under Review for Possible Downgrade
....EUR2080M A3 Certificate, Downgraded
to Baa1 (sf); previously on Jul 23, 2010 Aaa (sf) Placed Under
Review for Possible Downgrade
Issuer: FASTNET SECURITIES 5 LTD
....EUR510M A1 Certificate, Downgraded
to A1 (sf) and Remains On Review for Possible Downgrade; previously
on Jul 23, 2010 Aaa (sf) Placed Under Review for Possible Downgrade
....EUR510M A2 Certificate, Downgraded
to A1 (sf) and Remains On Review for Possible Downgrade; previously
on Jul 23, 2010 Aaa (sf) Placed Under Review for Possible Downgrade
....EUR527M A3 Certificate, Downgraded
to Baa1 (sf); previously on Jul 23, 2010 Aaa (sf) Placed Under
Review for Possible Downgrade
Issuer: Fastnet Securities 7 Ltd
....EUR375M A1 Certificate, Downgraded
to A3 (sf) and Remains On Review for Possible Downgrade; previously
on Dec 2, 2010 Aaa (sf) Placed Under Review for Possible Downgrade
....EUR375M A2 Certificate, Downgraded
to A3 (sf) and Remains On Review for Possible Downgrade; previously
on Dec 2, 2010 Aaa (sf) Placed Under Review for Possible Downgrade
....EUR375M A3 Certificate, Downgraded
to A3 (sf) and Remains On Review for Possible Downgrade; previously
on Dec 2, 2010 Aaa (sf) Placed Under Review for Possible Downgrade
Issuer: Fastnet Securities 8 Ltd
....EUR483M A1 Certificate, Downgraded
to A3 (sf) and Remains On Review for Possible Downgrade; previously
on Dec 2, 2010 Aaa (sf) Placed Under Review for Possible Downgrade
....EUR483M A2 Certificate, Downgraded
to A3 (sf) and Remains On Review for Possible Downgrade; previously
on Dec 2, 2010 Aaa (sf) Placed Under Review for Possible Downgrade
....EUR483M A3 Certificate, Downgraded
to A3 (sf) and Remains On Review for Possible Downgrade; previously
on Dec 2, 2010 Aaa (sf) Placed Under Review for Possible Downgrade
Issuer: Kildare Securities limited
....US$1451.6M A2 Notes,
Downgraded to A3 (sf) and Remains On Review for Possible Downgrade;
previously on Oct 14, 2010 Aaa (sf) Placed Under Review for Possible
Downgrade
....EUR1062M A3 Notes, Downgraded to
A3 (sf) and Remains On Review for Possible Downgrade; previously
on Oct 14, 2010 Aaa (sf) Placed Under Review for Possible Downgrade
....EUR96.8M B Notes, Downgraded
to Baa3 (sf); previously on Oct 14, 2010 Aa3 (sf) Placed Under
Review for Possible Downgrade
....EUR90.6M C Notes, Downgraded
to B2 (sf); previously on Oct 14, 2010 Baa2 (sf) Placed Under
Review for Possible Downgrade
....EUR26.55M D Notes, Downgraded
to Caa1 (sf); previously on Oct 14, 2010 Ba3 (sf) Placed Under
Review for Possible Downgrade
Issuer: Phoenix Funding 2 Limited
....EUR7125M A Notes, Aa2 (sf) Remains
On Review for Possible Downgrade; previously on Dec 2, 2010
Aa2 (sf) Placed Under Review for Possible Downgrade
Issuer: Phoenix funding 3 Limited
....EUR3040M A Notes, Downgraded to
Aa2 (sf) and Remains On Review for Possible Downgrade; previously
on Oct 14, 2010 Aa1 (sf) Placed Under Review for Possible Downgrade
Issuer: Phoenix Funding 4 Limited
....EUR748M A Notes, Downgraded to Aa2
(sf) and Remains On Review for Possible Downgrade; previously on
Oct 14, 2010 Aaa (sf) Placed Under Review for Possible Downgrade
Issuer: Wolfhound Funding 2008-1 Limited
....EUR4085M A Notes, Downgraded to
Ba2 (sf); previously on Jul 23, 2010 Aaa (sf) Placed Under
Review for Possible Downgrade
Issuer: Wolfhound Funding 2 Limited
....EUR2821M A Notes, Downgraded to
Baa1 (sf); previously on Jul 23, 2010 Aaa (sf) Placed Under
Review for Possible Downgrade
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Service(s) to the rated entity or its related third parties within the
three years preceding the Credit Rating Action. Please see the
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Moody's adopts all necessary measures so that the information it uses
in assigning a credit rating is of sufficient quality and from sources
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independent third-party sources. However, Moody's
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Please see ratings tab on the issuer/entity page on Moodys.com
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used in determining ratings, further information on the meaning
of each rating category and the definition of default and recovery.
London
Shivani Kak
Asst Vice President - Analyst
Structured Finance Group
Moody's Investors Service Ltd.
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454
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Annick Poulain
MD - Structured Finance
Structured Finance Group
Moody's France SAS
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Moody's downgrades ratings in 17 Irish Prime RMBS
