OREANDA-NEWS. October 13, 2015. Fitch Ratings placed three notes issued under Interstar Millennium Series 2005-3E Trust on Rating Watch Negative (RWN) on 19 June 2015 due to the downgrade of The Royal Bank of Scotland plc (RBS, BBB+/Stable/F2) on 19 May 2015. RBS is a currency swap provider for the transaction.

Fitch's rating action commentary on 19 June 2015 stated that RBS had not complied with its obligations to take remedial action within 30 days of the downgrade, which was based on the information Fitch had at the time. Fitch has subsequently become aware that RBS did take remedial action within 30 days and therefore complied with its obligations under the transaction's swap documentation. RBS is collateralising in accordance with the transaction documents, which reflect Fitch's counterparty criteria at the time of the transaction's closing.

As Fitch always applies its current criteria in assessing transactions, the notes remain on RWN. Discussions between RBS and the trust manager are continuing in relation to collateralising in accordance with Fitch's current counterparty criteria. Fitch expects to resolve the RWN in upcoming weeks.

The ratings are as follows:
GBP46.8m Class A2 notes (ISIN XS0232803709) 'AAAsf'; RWN
AUD37.0m Class AB notes (ISIN AU300INTD010) 'AAAsf'; RWN
AUD44.5m Class B notes (ISIN AU300INTD028) 'Bsf'; RWN

The rating action commentary "Fitch Affirms Six Interstar Millennium Series Transactions; Places One on Rating Watch Negative" dated 19 June 2015 is available on www.fitchratings.com.