OREANDA-NEWS. July 06, 2015. Fitch Ratings says that the downgrade of the Royal Bank of Scotland N.V. (RBS), which is a standby interest rate swap provider in Illawarra Series 2006-1 RMBS Trust and Illawarra Series 2007-1 CMBS Trust, had no impact on the transactions because RBS posted sufficient collateral to be an eligible derivative counterparty under the current criteria.

On 19 May 2015, Fitch Ratings downgraded RBS's Long- and Short-term Issuer Default Ratings (IDRs) to 'BBB+'/'F2' from 'A'/'F1'; Outlook Stable. The rating action was in conjunction with Fitch's review of sovereign support for banks globally, which the agency announced in March 2014.

The current ratings are as follows:

Illawarra Series 2006-1 RMBS Trust
Class A at 'AAAsf'; Outlook Stable; and
Class B at 'BBsf'; Outlook Stable.

Illawarra Series 2007-1 CMBS Trust
Class B at 'AAAsf'; Outlook Stable;
Class C at 'AAAsf'; Outlook Stable;
Class D at 'AAsf'; Outlook Stable; and
Class E at 'BB+sf'; Outlook Stable.