PRESS RELEASE: Moody's Rates Rbssp Resecuritization Trust 2010-7

20th Jul 2010 17:07

The following is a press release from Moody's Investors Service: Approximately $100,000,000 of Debt Securities Rated New York, July 20, 2010 -- Moody's Investors Service has assigned ratings to the Class A Certificates and Class AIO Certificates (the "Resecuritized Securities") issued by the RBSSP Resecuritization Trust 2010-7 (the "Resecuritized Transaction") and backed by a certain rental car ABS. The complete rating action is as follows: Issuer: RBSSP Resecuritization Trust 2010-7 $100,000,000, 2.95% Resecuritization Trust Certificates, Series 2010-7 Class A Certificates, Assigned A2 6.36% Resecuritization Trust Certificates, Series 2010-7 Class AIO Certificates, Assigned A2 The Resecuritized Securities are backed by $100,000,000 (out of an aggregate $450,000,000 issue amount) of the Series 2009-1 9.31% Rental Car Asset Backed Notes (the "Underlying Security") issued by Avis Budget Rental Car Funding (AESOP) LLC, an indirect subsidiary of Avis Budget Car Rental LLC (ABCR, B2 corporate family rating, positive outlook). The Underlying Security is rated A2 and the Resecuritized Securities are assigned the same A2 rating as the Underlying Security based on the Resecuritized Transaction's essentially 'pass through' transaction structure. The ratings on the Class A Certificates and Class AIO Certificates address payment of promised interest, and in the case of the Class A Certificates only, payment of ultimate principal. The interest payment due on the Class AIO Certificates is based on the notional amount thereof. Such notional amount on any date will be equal to the outstanding principal balance of the Class A Certificates on such date. Therefore, the actual amount of interest paid on the Class AIO Certificates through the life of the transaction will be sensitive to any principal prepayments made on the Class A Certificates. The ratings do not address any other amounts that may be payable to such securities. V SCORE AND LOSS SENSITIVITY The ratings on the Resecuritized Securities are linked to the ratings of the Underlying Security. Any event causing deterioration in the credit or rating of the Underlying Security will have a like impact on credit or rating of the Resecuritized Securities. As a result, the V Score and Loss Sensitivity are identical to the corresponding V Score and Loss Sensitivity for the Underlying Security. For information on the V Score and Loss Sensitivity of the Underlying Security see the July 24, 2009 press release relating to the Underlying Security, "Moody's assigns definitive rating to Avis Budget rental car asset-backed notes." PRINCIPAL RATING METHODOLOGY The Resecuritized Securities are assigned the same ratings as those for the Underlying Security based on the Resecuritized Transaction's essentially 'pass through' transaction structure. The rating for the Underlying Security is based on (1) collateral in the form of rental fleet vehicles, (2) the presence of ABCR as lessee under operating leases, (3) minimum liquidity in the form of cash or letters of credit, (4) the legal structure, and (5) the capabilities and the expertise of ABCR. The Moody's methodology used to rate the Underlying Security is outlined in the July 24, 2009 press release relating to the Underlying Security, "Moody's assigns definitive rating to Avis Budget rental car asset-backed notes." This and other methodologies and factors that may have been considered in the rating process can also be found in the Rating Methodologies sub-directory on Moody's website. 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. TRANSACTION DESCRIPTION On the Resecuritization Transaction's closing date, (1) RBS Securities Inc., as seller (the "Seller"), sold the Underlying Security to RBS Acceptance Inc., as depositor (the "Depositor") pursuant to an asset sale agreement between the Seller and the Depositor, and (2) the Depositor transferred the Underlying Security to the resecuritization trust pursuant to the trust agreement and caused the Resecuritized Securities to be issued. On the Resecuritization Transaction's closing date, the Seller paid all amounts owed to the trustee in connection with its duties or obligations under the trust agreement for the Resecuritization Transaction. In addition, under such trust agreement, the Seller agrees to reimburse the trustee and/or the depositor for any extraordinary trust fund expenses incurred by each of them at any time, up to a limit of $250,000 per calendar. Also, under the trust agreement, both the trustee and the depositor agree not to petition or pursue any other rights against the Trust Fund for any unpaid Extraordinary Trust Fund Expenses. Interest payment distributions from the Underlying Security are allocated pro rata among the interest payments due for the Class A Certificates and Class AIO Certificates. Principal payment distributions from the Underlying Security are allocated to the principal due on the Class A Certificates. The Resecuritized Securities were sold in a privately negotiated transaction without registration under the Securities Act of 1933 (the Act) under circumstances reasonably designed to preclude a distribution thereof in violation of the Act. The issuance has been designed to permit resale under Rule 144A. ADDITIONAL INFORMATION Additional research, including a presale report on the Underlying Security, is available on http://www.moodys.com. 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