Moody's Investors Service has placed the ratings of all classes of notes issued by Monastery 2004-I B.V.,Monastery 2006-I B.V., Chapel 2003-I B.V. and Chapel 2007-I B.V. on review for possible downgrade.  

The action was triggered by emergency regulations being in effect for DSB Bank N.V. on October 12. DSB was the seller and is the servicer in securitizations.

For the time being, the securitized receivables will be collected by DSB.

Moody's said that DSB, acting through ATC Management, will focus on implementing certain measures with its administrator within the next few days aiming to ringfence cash flows from the DSB estate.

The measure will prevent serving notices being issued to the securitized borrowers too hastily and therefore avoid the possible risk of payment disruptions resulting therefrom. It would also ensure a smooth transition to potential back-up servicers.

In relation to the rights of the issuers on the securitized assets, Chapel 2003-I B.V. and Monastery 2004-I B.V. (the two transactions rated by Moody's that were closed before the introduction of silent assignment in Dutch law in October 2004) are based on a conditional sale.

Upon emergency regulations the respective issuers are entitled to termination of certain transaction documents, such as the servicing agreement.

Moody's said it would investigate the potential impact of such payment disruptions and potential termination of transaction agreements on the ratings currently assigned to the notes.

Moody’s also intends to closely monitor the replacement of the servicer if the servicing agreement is terminated. At this stage, the transactions benefit from different back-up servicing arrangements, with Quion Groep for Monastery 2004-I B.V., Stater for Monastery 2006-B.V., Stater and Defam Select B.V. for Chapel 2007-I B.V., and Achmea Bank Holding for
Chapel 2003-I B.V.

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