OREANDA-NEWS. Fitch Ratings assigns the following ratings to the RBC Municipal Floater Certificates (Floater Certificates), RBC Municipal Residual Certificates (Residual Certificates) and Trust Receipts of the RBC Municipal Products, LLC Trust series listed below:

--Floater Certificates, series E-73 'AA/F1+', Negative Outlook;

--Residual Certificates, series E-73'AA', Negative Outlook;

--Trust Receipts, series 2016-E73 'AA', Negative Outlook.

KEY RATING DRIVERS

The long-term 'AA', Negative Outlook ratings assigned to the series E

Ireland's economy is highly exposed to "Brexit" and a weakening of the operating environment could slow improvements in asset quality and capitalisation among the banks, says Fitch Ratings. Our expectation of continued improvements is the main driver for the Positive Outlooks on the ratings of Allied Irish Banks (AIB) and Bank of Ireland (BOI).

We expect the UK's vote to leave the EU to be negative for the Irish economy but the extent of any weakening of its operating environment, triggered by a potential slowdown of growth in the UK, sterling depreciation, and potential future trade barriers, will only become clear as the EU-UK negotiations develop.

A decline in Irish real estate prices or deteriorating growth prospects, rising unemployment and reduced investment confidence could put pressure on Irish banks' asset quality and profitability.

The banks also have direct exposure to the UK through their operations. A downturn in UK real estate prices is a risk for BOI as UK loans, largely retail mortgages and commercial real estate loans, account for 44% of its overall loan portfolio. AIB is less exposed to a downturn in the UK's operating environment because the UK represents a lower 16% of its lending.

The ratings on BOI and AIB are driven by their standalone fundamentals. Their standalone financial strength, reflected in their Viability Ratings, has improved steadily in recent years. The Viability Ratings of BOI and AIB have been upgraded five times since end-2012, largely due to rising capital ratios, stronger funding profiles, enhanced profitability and improving asset quality.

But a weaker operating environment, sparked by slowdown in economic growth, and reducing investor confidence, could reduce the banks' profitability and limit their ability to dispose of impaired loans.