CHICAGO--()--Fitch Ratings has been notified that BNP Paribas (BNPP), hedge counterparty of Tenzing CFO S.A (Tenzing), has failed to satisfy the Minimum Hedge Counterparty Ratings as outlined in the closing documents of Tenzing. As a remedy, BNPP has executed a credit support annex (CSA) which requires collateral posting under a predetermined formula.
BNPP is currently rated 'A+/F1+' with a Stable Outlook by Fitch and remains an eligible counterparty for this transaction as defined in Fitch's 'Counterparty Criteria for Structured Finance Transactions', dated May 30, 2012. Fitch does not expect the remedies proposed by BNPP to have any impact on the ratings of the outstanding notes in this transaction.
Fitch has not reviewed the proposed CSA given that BNPP remains an eligible counterparty for this transaction. Should BNPP be downgraded below Fitch's relevant eligibility threshold, as described in then applicable criteria, Fitch will determine whether the remedies effective at that time sufficiently mitigate the transactions' exposure in the context of then current notes' ratings and remaining derivative terms.
Fitch is not a party to the transaction and therefore does not provide consent or approval to changes in its terms, as that remains the sole preserve of the transaction parties. Fitch expects to be notified by the trustee when or if the proposed amendments are executed either in part or in their entirety.
Additional information is available at 'www.fitchratings.com'.