S&P Accepts Tax Event As Termination Event in SF Swap.Business Editors NEW YORK--(BUSINESS WIRE)--Sept. 17, 2003 Standard & Poor's--In response to requests from members of International Swap Dealers Association International Swap Dealers Association (ISDA) Formed in 1985 to promote uniform practices in the writing, trading, and settlement of swaps and other derivatives. (ISDA ISDA See: International Swap Dealers Association ), Standard & Poor's Ratings Services Ratings Service A company, such as Moody's or Standard & Poor's, that rates various debt and preferred stock issues for safety of payment of principal, interest, or dividends. today confirmed that the Termination Event found in Section 5(b)(iii) of the 2002 ISDA Master Agreement, Tax Event, is a termination event consistent with the security rating for both the security issuer and swap counterparty Counterparty The other participant, including intermediaries, in a swap or contract. for swap agreements found in structured finance transactions. Any acceptance of the termination event of Tax Event is conditioned upon both parties representation, at closing, that under current law, no withholding tax The amount legally deducted from an employee's wages or salary by the employer, who uses it to prepay the charges imposed by the government on the employee's yearly earnings. would apply. In some instances legal opinions to this effect may also be required. Standard & Poor's views the imposition of withholding tax after the date on which the swap agreement is entered into as change in law. Ratings do not address change in law risk. Copyright (c) 2003, Standard & Poor's Ratings Services |
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