Alba 2006-2 and 2007-1 informed the trustee that there could be an event of default on the transactions via an Irish Stock Exchange announcement. As a result, Fitch Ratings placed all 17 tranches from both deals on rating watch negative.
The notice states that for Alba 2007-1, payments of principal and interest due to be made on the interest payment date falling on September 17, 2009 were not made on the notes as required by the conditions. An identical statement also appears on the Alba 2006-2 relating to the nonpayment of principal and interest on Sept. 15.
The notice also includes a comment that discussions continue between the issuer, its cash manager, master servicer, the arranger and the trustee, to find a resolution in relation to some reconciliation issues that have lead to the nonpayment. However, no details were given as to what caused the nonpayment.
The servicer/administrator in these transactions is Wells Fargo Securitization Services, and the principal paying agent, trustee and cash manager is HSBC Bank.
Fitch said that if an event of default is announced, then the ratings will be downgraded to 'D'.