Downgrades to hit UK RMBS counterparties

The imminent downgrade by MoodyÕs of European banksÕ long-term and short-term ratings will see more than half of all UK RMBS counterparties breach their first rating trigger. Royal Bank of Scotland and Lloyds TSB face the highest exposures, but all affected banks will need to post collateral, find a third party guarantee or appoint a replacement.