Bangkok--5 Jul--Moody's Investors Service EUR227.5 million of repackaged securities affected Moody's Investors Service has today upgraded to Aaa the principal-only rating for the EUR227,500,000 Series 25Principal Protected Notes due 2014 issued by Lunar Funding III Limited. The issuance is pursuant to the US$5,000,000,000 Secured Asset-Backed Medium Term Note Programme arranged by the Royal Bank of Scotland Plc. The complete rating action is as follows: Issuer: Lunar Funding III Limited Tranche description: EUR227,500,000 Series 25 Principal Protected Notes due 2014 Prior rating: Aa1 Current rating: Aaa The rating action is due to the upgrade of the collateral, the EUR227.5 million zero coupon bond issued by the Royal Bank of Scotland Plc, to Aaa. The rating of the notes addresses the ultimate repayment of principal by the legal maturity date. Moody's does not rate any of the interest promise of the notes. Moody's ratings address only the credit risks associated with the transaction. Other non-credit risks, such as those associated with the timing of principal prepayments, have not been addressed and may have a significant impact on the yield to investors. Moody's Investors Service is a publisher of rating opinions and research. It is not involved in the offering or sale of any securities, nor is it acting on behalf of the offering party. This release is not a solicitation or a recommendation to buy, hold or sell securities. Hong Kong Elaine Ng Asst Vice President - Analyst Structured Finance Group Moody's Asia Pacific Ltd. JOURNALISTS: (852) 2916-1150 SUBSCRIBERS: (852) 2916-1121 Hong Kong Myrna Fajardo VP - Senior Credit Officer Structured Finance Group Moody's Asia Pacific Ltd. JOURNALISTS: (852) 2916-1150 SUBSCRIBERS: (852) 2916-1121