Market Overview

Fitch: No Impact on 3 Structured Finance Transactions Following Novation of Counterparty

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NEW YORK--(BUSINESS WIRE)--

Fitch Ratings has been notified of a novation of the hedge counterparty, The Royal Bank of Scotland PLC (RBS) to The Bank of New York Mellon (BONY). The ratings on the subject transactions listed below will not be affected by this novation.

Fitch has been notified that effective March 16, 2012, RBS will novate all rights, liabilities, duties and obligations to BONY under the respective ISDA Master Agreements and the Credit Support Agreements and Annexes (CSAs) on the transactions listed below. Currently, BONY's Fitch long-term Issuer Default Rating (IDR) of 'AA-', Outlook Stable, and a short-term IDR of 'F1+' are sufficient to support the ratings of the affected transactions under Fitch's counterparty criteria.

Fitch is not a party to the transactions and therefore does not provide consent or approval to the novation of the transactions as that remains the sole preserve of the transaction parties. Fitch expects to be notified by the trustee when or if the proposed changes are executed either in part or in their entirety.

Fitch encourages issuers and arrangers to disclose publicly, as early as possible, any proposed changes and amendments to transaction structures and documents to all interested parties. This will enable investors to conduct their own analysis in a timely fashion.

Fitch will continue to monitor these transactions based upon the amended transaction documents and most recent applicable Fitch criteria.

The affected transactions are as follows:

Lehman Brothers Small Balance Commercial Mortgage Trust - 2006-2;

Lehman Brothers Small Balance Commercial Mortgage Trust - 2006-1;

BNC Mortgage Loan Trust - BNC 2006-2.

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research:

--'Counterparty Criteria for Structured Finance Transactions' (March 12, 2012);

--'Counterparty Criteria for Structured Finance Transactions: Derivative Addendum' (March 12, 2012).

Applicable Criteria and Related Research:

Counterparty Criteria for Structured Finance Transactions

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=667929

Counterparty Criteria for Structured Finance Transactions: Derivative Addendum

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=667930

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE.

Fitch Ratings
Primary Analyst
Natasha Hanson, +1-212-908-0272
Director
One State Street Plaza
New York, NY 10004
or
Committee Chairperson
Grant Bailey, +1-212-908-0544
Managing Director
or
Media Relations:
Sandro Scenga, +1-212-908-0278
Email: sandro.scenga@fitchratings.com

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