The recent downgrade of U.K. mortgage lender Bradford & Bingley has resulted in the breach of some triggers of its Aire Valley securitization master trust. The negative rating action could threaten certain replenishing or management provisions of the RMBS master trust.

All three rating agencies have downgraded the lender following the failure of B&B's rights issue, which sent the lender's share price spiraling down to GBP0.67 ($1.31) on June 2, representing a monthly fall of around 60%.

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