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PARIBAS DRIVS GARANTIS COUNTERPARTY RISK RATED 'AAA' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, Dec. 2 /PRNewswire/ -- Paribas Drivs Garantis' (PDG) counterparty risk is rated "AAA" by Fitch. PDG is a subsidiary of Compagnie Financire de Paribas, the holding company of Banque Paribas. Its sole purpose is to guarantee certain derivative obligations of Banque Paribas. The rating is based on strong operating guidelines that require documentation supporting the termination of contracts upon a "designated termination event" (DTE), a solid capital base to support market risk at termination and potential counterparty exposures, as well as Banque Paribas' global capital markets presence and track record.
 PDG, a 99.9% owned subsidiary of Compagnie Financire de Paribas, was established as an independent company to provide guarantees for derivatives transactions at the highest counterparty rating in this highly competitive and credit sensitive business. Established with an initial Ffr 800 million of equity, PDG will guarantee derivative transactions of certain Banque Paribas counterparties using approved master agreements. PDG benefits from the assignment of asset values of guaranteed transactions.
 Weekly capital calculations will be performed to determine minimum capital requirements that must be maintained by Compagnie Financire de Paribas. The capital calculations will take into account potential market risk in the unlikely event of termination and counterparty risk associated with the assigned assets. Capital will be invested in highly rated liquid investments.
 Also, strong operating guidelines require the immediate termination of all contracts under the master agreements with market valuations performed within two weeks, under a (DTE). A DTE includes the unlikely event of the insolvency of Banque Paribas or Compagnie Financire de Paribas, and violation in the minimum capital requirements.
 Banque Paribas is an active participant in the derivatives markets and the establishment of PDG will enhance its business with the highest rated counterparties. Fitch believes that PDG's operating procedures will support the maintenance of high capital standards relative to its expected operating and financial risks.
 -0- 12/2/93
 /CONTACT: Teri L. Seelig, 212-908-0638, or Nancy E. Stroker, CFA, 212-908-9533, both of Fitch/


CO: Paribas Drivs Garantis ST: IN: FIN SU: RTG

TW -- NY091 -- 9909 12/02/93 15:01 EST
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Publication:PR Newswire
Date:Dec 2, 1993
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