April 16 (The following statement was released by the rating agency)
Fitch Ratings says there is no ratings impact on Leek
17, 18, 19 and 20 following the transfer of the GIC account provider to The Bank
of New York Mellon (BNY Mellon, 'AA-'/Stable/'F1+') from The Royal Bank of
Scotland plc. (RBS, 'A'/Stable/'F1').
KEY RATING DRIVERS:
Under Fitch's structured finance counterparty criteria, BNY Mellon is eligible
to act as a direct support counterparty.
In addition, the guarantee provided by RBS in relation to The Co-operative
Bank's (The Co-op, 'BBB-'/Negative/'F3') internal GIC account for Leek 20 has
Consequently, given The Co-op's rating below 'A'/'F1' (the minimum rating
requirement as per transaction documentation), any cash held in the Co-op's
internal GIC account is now cash collateralised in The Bank of New York Mellon
GIC account, a structure which is already utilised in Leek 17, 18 and 19. The
Co-op's internal GIC Account is designed to manage certain operational aspects,
such as return of borrower payments. Amounts held in these accounts typically
range from 2% to 10% of quarterly collected receipts.
This commentary only addresses the specific actions that relate to the
amendments to the GIC accounts. Therefore, any future downgrade of BNY Mellon
below 'A'/'F1' could impact ratings.