LONDON & NEW YORK--(BUSINESS WIRE)--Fitch Ratings reviewed documents relating to proposed amendments to current hedge agreements being pursued in 3 structured finance (SF) transactions with derivative counterparty exposure to Bank of America or Merrill Lynch related entities.
The proposed amendments involve the novation of existing hedge agreements from Merrill Lynch International Bank Limited (MLIB) to Merrill Lynch International (MLI) for the transactions listed below:
Dekania Europe CDO II P.L.C.
Dekania Europe CDO III P.L.C.
Newgate Funding PLC Series 2007-1 (Classes Bb, Cb, Db, Mb)
MLI is unrated by Fitch; however, the novated swap will continue to benefit from a guarantee by Merrill Lynch & Co., Inc. (MLCo) which is rated A/F1, Outlook Stable and is consistent with Fitch's counterparty criteria. As a result, Fitch concludes that the novations, in and of themselves, will have no impact upon the current note ratings. Fitch, however, would expect additional remedial action to be taken in the event MLCo is downgraded below 'A' or 'F1'.
Additional information is available at 'www.fitchratings.com'.