Moodys downgrade of RBS NV

The long-term senior unsecured debt rating of The Royal Bank of Scotland N.V. (formerly ABN AMRO Bank N.V.), (“RBS N.V.”), was downgraded by Moody’s on 5 February 2010 to A2 from Aa3. In several transactions, particularly swaps but also GICs and liquidity facilities triggers have been hit and require remedial action.

We understand that RBS N.V. wishes to comply with its obligations through novation of the affected agreements to The Royal Bank of Scotland plc (S&P Long Term: A+; S&P Short Term: A-1; Moody's Long Term: Aa3; Moody's Short Term: P1; Fitch Long Term: AA-; Fitch Short Term: F1+). Steps have been undertaken in this direction.

ATC Management B.V. and Amsterdamsch Trustee's Kantoor B.V. in their capacity as Director of the relevant entities, are committed to make sure that the novation agreements are effective as soon as possible. Meanwhile, given the nature of the transactions and the time necessary to ensure duly executed novation arrangements, RBS N.V. is expected to post collateral where so required, in accordance with the appendix to Moody’s’ report of May 2007 “Framework for de-linking Hedge Counterparty Risks from global structured finance cash flow transactions”.

Announcement following Moody’s downgrade of RBS N.V. long term ratings