OREANDA-NEWS. Fitch Ratings has downgraded Gemini (Eclipse 2006-3) Plc's class A to E notes as follows:

GBP412.3.2m class A (XS0273575107): downgraded to 'Dsf' from 'Csf'; Recovery Estimate (RE) RE5%
GBP27.8m class B (XS0273576289): downgraded to 'Dsf' from 'Csf'; RE0%
GBP101.8m class C (XS0273576446): downgraded to 'Dsf' from 'Csf''; RE0%
GBP81.4m class D (XS0273576792) downgraded to 'Dsf' from 'Csf'; RE0%
GBP70.2m class E (XS0273576958): downgraded to 'Dsf' from 'Csf'; RE0%

The transaction is a securitisation of a GBP850.4m senior loan originated in November 2006 by Barclays Bank plc (A/Stable/F1). The loan has been in special servicing since 2008 following an uncured loan-to-value (LTV) covenant breach.

Fitch is withdrawing the ratings of the notes upon default. Accordingly, Fitch will no longer provide ratings or analytical coverage for the notes.

KEY RATING DRIVERS
The downgrade follows a default on the payment of interest on the class A notes as of the January 2016 payment date. As at 10 December 2015, the remaining portfolio securing the loan - other than the Sussex Manor property in Crawley - was sold to a third party investor.

Payment of swap termination and property liquidation cost as well as the retention of a certain amount to fund ongoing litigation led to a redemption amount of GBP156m, which was paid to class A noteholders as of the January 2016 payment date.

Fitch understands from the servicer that a valuation for the Sussex Manor property is being commissioned, with a sale of the property envisioned for 1Q16 - either by the tenant who holds a respective pre-emptive purchase right or by the purchaser of the remaining properties.

Associated recoveries from the sale of the Sussex Manor property are reflected in Fitch's recovery estimate for class A.

RATING SENSITIVITIES
Not applicable

DUE DILIGENCE USAGE
No third party due diligence was provided or reviewed in relation to this rating action.

DATA ADEQUACY
Fitch has checked the consistency and plausibility of the information it has received about the performance of the asset pool and the transaction. There were no findings that were material to this analysis. Fitch has not reviewed the results of any third party assessment of the asset portfolio information or conducted a review of origination files as part of its ongoing monitoring.

Fitch did not undertake a review of the information provided about the underlying asset pool ahead of the transaction's initial closing. The subsequent performance of the transaction over the years is consistent with the agency's expectations given the operating environment and Fitch is therefore satisfied that the asset pool information relied upon for its initial rating analysis was adequately reliable.

Overall, Fitch's assessment of the information relied upon for the agency's rating analysis according to its applicable rating methodologies indicates that it is adequately reliable.

SOURCES OF INFORMATION
The information below was used in the analysis.
-Transaction reporting provided by the servicer and the cash manager as at end-January 2016