OVERVIEW We have reviewed the performance of Sestante Finance's series 3 and 4's underlying portfolios, which have shown a further deterioration in performance since our August 2009 review. We have therefore lowered our ratings on series 3's class C1 and C2 notes and series 4's class B, C1, and C2 notes for performance reasons. We have also lowered and removed from CreditWatch negative our ratings on series 3's class A and B notes and series 4's class A and B notes as the transaction documents do not fully reflect our 2010 criteria, but do reflect our prior counterparty criteria. Sestante Finance's series 3 and 4 are Italian RMBS transactions backed by pools of residential mortgage loans that Meliorbanca originated in
