London, 12 December 2012 -- Moody's Investors Service stated today that the redemption, restructuring and ultimate reissuance of the Class B-2 Notes on 10 December 2012 does not, in and of itself and at this time, result in a reduction or withdrawal of the current rating of the notes issued by Telereal Securitisation PLC (the "Issuer").

Moody's has reviewed the terms and conditions of the amended B-2 Notes. The key terms of the revised and reissued Class B-2 Notes are: (i) the initial floating interest rate coupon, referenced to 3-months LIBOR plus a margin of 4.3200% per annum, was amended to a fixed rate set at 4.09020%; (ii) the first interest payment date at the revised coupon will be on 12 March 2013 and the last payment date will be the 10 December 2021 (the "Revised Conversion Date"); (iii) at the Revised Conversion Date the Class B-2 Notes' coupon will revert back to a floating rate of 4.3200% per annum over 3-months LIBOR; (iv) the mismatch between the fixed rate under the Term B-2 Advance and the floating rate of the initial Class B-2 Notes was hedged by a fixed/floating interest rate swap. The swap's mark-to-market, which was in the swap counterparty's favour, was crystallised and is payable in fixed instalments of approximately GBP 2.12m on each interest payment date until the Revised Conversion Date in 2021; (v) no amendments have been made to the existing amortisation profile.

From the proceeds of the reissue, the Issuer redeemed the initial Class B-2 Notes. However, the Issuer has not made a corresponding prepayment of the Term B-2 Advance under the Issuer/Borrower Facility Agreement. Instead, the Issuer has amended the terms of the Class B-2 Notes and has made corresponding amendments to the Term B-2 Advance. The redemption of the initial Class B-2 Notes and subsequent reissuance, follows the Issuer's option to issue notes ("Replacement Notes") of each class of notes if certain conditions are met as outlined in the Note Trust Deed, dated 12 December 2001.

Moody's expects the described amendments to be slightly credit positive due to due savings in overall debt service costs from the Issuer's perspective over the initial nine year term of the reissued Class B-2 Notes.

The principal methodology used in this rating was Moody's Approach to Real Estate Analysis for CMBS in EMEA: Portfolio Analysis (MoRE Portfolio) published in April 2006. Please see the Credit Policy page on www.moodys.com for a copy of this methodology.

Other factors used in this rating are described in European CMBS: 2012 Central Scenarios published in February 2012.

Moody's will continue to monitor the ratings. Any change in the ratings will be publicly disseminated by Moody's through appropriate media.

Manuel Rollmann 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 Andrea M. Daniels Senior Vice President Structured Finance Group JOURNALISTS: 44 20 7772 5456 SUBSCRIBERS: 44 20 7772 5454 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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