London, 28 November 2012 -- The performance of the Belgian residential mortgage-backed securities (RMBS) market was substantially flat in the 12-month period leading up to September 2012, according to the latest indices published by Moody's Investors Service.

From September 2011 to September 2012, the 90+ day delinquency trend increased from 0.6% to 0.7% of the outstanding portfolio. Cumulative defaults stabilised at 0.2%. Moody's annualised total redemption rate (TRR) trend increased from 6.7% to 9.4% over the year.

Moody's expects delinquency rates to remain at similar levels. In 2012 the economy is likely to contract by 0.1% (See "Credit Opinion: Belgium, Government of", 11 October 2012: http://www.moodys.com/research/Belgium-Government-of-Credit-Opinion--COP_100220). While that level of economic growth is unlikely to support job growth, it is also unlikely to increase unemployment levels materially. Broadly flat house price growth will help contain losses on foreclosed properties and so losses are likely to remain steady. House prices increased 2.7% year on year in Q2 2012.

On 14 November, Moody's placed on review the ratings of tranche A notes issued by Penates Funding 4 due to lack of remedial action following issuer account bank downgrade below A2/P-1. (See PR: http://www.moodys.com/research/Moodys-reviews-for-downgrade-European-RMBS-transactions-with-exposure-to--PR_259635)

In the 12-month period through September 2012, Moody's rated seven transactions in the Belgian RMBS market:

o B-ARENA NV/SA, COMPARTMENT No. 2 and B-ARENA NV/SA, COMPARTMENT No. 3, originated by Delta Lloyd Bank NV/SA (Not Rated), issued EUR1.7 billion in total.

o Loan Invest N.V./S.A., Compartment Home Loan Invest 2011, originated by KBC Bank N.V. (A3/P-2), issued approximately GBP3.5 billion.

o Record Lion NV/SA - Compartment Record Lion RMBS I, originated by Record Bank NV (Not Rated, fully owned by ING Belgium SA/NV (A2/P-1)), issued EUR2.7 billion.

o Royal Street NV/SA - Compartment RS-3, originated by Axa Bank Europe (A2/P-1), issued EUR1.8 billion.

o PENATES FUNDING N.V./ S.A., Compartment PENATES-4, originated by Belfius Bank SA/NV (Baa1/P-2), issued EUR8.6 billion.

o Belgian Lion N.V/S.A, Compartment Belgian Lion RMBS II, originated by ING Belgium SA/NV (A2/P-1), issued EUR3.2 billion.

As of September 2012, the 17 Moody's-rated Belgian RMBS transactions had an outstanding pool balance of EUR66.4 billion, which constitutes a year-over-year increase of 38.7%.

Moody's semi-annual indices are usually published mid-month and can be found on www.moodys.com in the Structured Finance sub-directory under the Research & Ratings tab. In the left-hand side bar, under the Research Type category heading, select Statistical Data. Finally, on the Research tab in the middle of your screen, select the third option, Indices & Data.

http://www.moodys.com/viewresearchdoc.aspx?docid=PBS_SF308765

In addition, Moody's publishes a weekly summary of structured finance credit, ratings and methodologies, available to all registered users of our website, at www.moodys.com/SFQuickCheck.

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Abdelkarim Badis Associate Analyst Structured Finance Group Moody'sInvestors Service Ltd. One Canada SquareCanary WharfLondon E14 5FA United Kingdom JOURNALISTS: 44 20 7772 5456 SUBSCRIBERS: 44 20 7772 5454 Marco Szego VP - Senior Credit Officer Structured Finance Group Telephone:+39-02-9148-1100 Releasing Office: Moody's Investors Service Ltd. One Canada SquareCanary WharfLondon E14 5FA United Kingdom JOURNALISTS: 44 20 7772 5456 SUBSCRIBERS: 44 20 7772 5454 (C) 2012 Moody's Investors Service, Inc. and/or its licensors and affiliates (collectively, "MOODY'S"). All rights reserved.

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