Fitch: No Rating Impact on CWCapital COBALT Vr Following Novation of Counterparty

NEW YORK--()--Fitch Ratings has been notified of a novation of the hedge counterparty, Citibank, N.A. to The Bank of Nova Scotia for the swap within CWCapital COBALT Vr. The rating for class A1 from this transaction will not be affected by this novation.

Fitch has been notified that Citibank N.A. will novate all rights, liabilities, duties and obligations to the Bank of Nova Scotia under the respective ISDA Master Agreements and the Credit Support Agreements and Annexes (CSAs) on the above referenced interest rate hedges. Currently, Bank of Nova Scotia's Fitch long-term Issuer Default Rating (IDR) of 'AA-'/Outlook Stable and short-term IDR of 'F1+' are sufficient to support the ratings of the affected transactions under Fitch's counterparty criteria.

Fitch is not a party to the transactions and therefore does not provide consent or approval to the novation of the transactions as that remains the sole preserve of the transaction parties. Fitch expects to be notified by the trustee when or if the proposed changes are executed either in part or in their entirety.

Fitch encourages issuers and arrangers to disclose publicly, as early as possible, any proposed changes and amendments to transaction structures and documents to all interested parties. This will enable investors to conduct their own analysis in a timely fashion.

Fitch will continue to monitor these transactions based upon the amended transaction documents and most recent applicable Fitch criteria.

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research:

--'Counterparty Criteria for Structured Finance and Covered Bonds' (May 14, 2014);

--'Counterparty Criteria for Structured Finance and Covered Bonds: Derivative Addendum' (May 14, 2014).

Applicable Criteria and Related Research:

Counterparty Criteria for Structured Finance and Covered Bonds

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=744158

Counterparty Criteria for Structured Finance and Covered Bonds: Derivative Addendum

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=744175

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

Contacts

Fitch Ratings
Primary Analyst
Tiffany Pierce
Associate Director
+1 212-908-0733
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Committee Chairperson
Britt Johnson
Senior Director
+1 312-606-2341
or
Media Relations:
Sandro Scenga, +1 212-908-0278
sandro.scenga@fitchratings.com

Contacts

Fitch Ratings
Primary Analyst
Tiffany Pierce
Associate Director
+1 212-908-0733
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Committee Chairperson
Britt Johnson
Senior Director
+1 312-606-2341
or
Media Relations:
Sandro Scenga, +1 212-908-0278
sandro.scenga@fitchratings.com