LONDON & NEW YORK--(BUSINESS WIRE)--Fitch Ratings reviewed documents relating to proposed amendments to current hedge agreements being pursued in the Taurus CMBS (UK) 2006-2 P.L.C. transaction. The transaction has derivative counterparty exposure to Bank of America 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) as well as the inclusion of a new guaranty from Bank of America Corporation (BAC) supporting the novated hedge agreements.
MLI, as well as BAC, currently hold credit ratings which are 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 both MLI and BAC were downgraded below 'A' or 'F1'.
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