PRESS RELEASE: Moody's Comments On The Proposed -2-

11th Jun 2010 16:27

hedged notional could lead to the Borrower being partially unhedged during the extended term of the Loan; - Moody's will have to assess in more detail whether the restructuring and anticipated disposals could result in negative selection over time in order to accomplish the sales and Loan amount targets set by the proposed covenants; and - Moody's has preliminarily assessed the proposed swap involved in the restructuring. The swap arrangements contain certain elements that are not in compliance with Moody's latest published criteria to achieve delinkage from counterparty risk. However, Moody's notes that the current swap in place contains similar elements and that the current Baa3 rating of the Notes is unlikely to be negatively affected by this non-compliance. Given Moody's preliminary understanding of the Proposal, the restructuring will most likely not have a negative impact on the rating of the Notes. Notwithstanding the detailed analysis of the restructuring as well as the review of the legal documentation, Moody's is at this preliminary stage of the opinion that the credit positive aspects outweigh the credit negative aspects of the Proposal. If the proposal was implemented, the impact on the rating over time would to a larger extent depend on the sales success and the respective delevering via cash sweep. Moody's will also review the legal and structural changes proposed in more detail. 3) Rating Methodology The principal methodologies used in rating and monitoring the transaction are "Update on Moody's Real Estate Analysis for CMBS Transaction in EMEA" June 2005, "Moody's Updates on its Surveillance Approach for EMEA CMBS" March 2009, "Moody's Approach to Evaluating Distressed Exchange", March 2009, and "Moody's Approach to Rating Structured Finance Securities in Default", November 2009, which are available on www.moodys.com in the Rating Methodologies sub-directory under the Research & Ratings tab. 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. The last Performance Overview for this transaction was published on 18 March 2010. Further information on Moody's analysis of this transaction is available on www.moodys.com. In addition, Moody's publishes a weekly summary of structured finance credit, ratings and methodologies, available to all registered users of our website, at www.moodys.com/SFQuickCheck. For updated monitoring information, please contact [email protected]. To obtain a copy of Moody's New Issuer Report on this transaction, please visit Moody's website at www.moodys.com or contact our Client Service Desk in London (+44-20-7772 5454). Copyright 2010 Moody's Investors Service, Inc. and/or its licensors and affiliates (collectively, "MOODY'S"). All rights reserved. CREDIT RATINGS ARE MOODY'S INVESTORS SERVICE, INC.'S ("MIS") CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES. MIS DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUAL, FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT. 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Any publication into Australia of this Document is by Moody's affiliate Moody's Investors Service Pty Limited ABN 61 003 399 657, which holds Australian Financial Services License no. 336969. This document is intended to be provided only to wholesale clients (within the meaning of section 761G of the Corporations Act 2001). By continuing to access this Document from within Australia, you represent to Moody's and its affiliates that you are, or are accessing the Document as a representative of, a wholesale client and that neither you nor the entity you represent will directly or indirectly disseminate this Document or its contents to retail clients (within the meaning of section 761G of the Corporations Act 2001). This credit rating is an opinion as to the creditworthiness or a debt obligation of the issuer, not on the equity securities of the issuer or any form of security that is available to retail investors. It would be dangerous for retail investors to make any investment decision based on this credit rating. If in doubt you should contact your financial or other professional adviser. (END) Dow Jones Newswires June 11, 2010 11:27 ET (15:27 GMT)