Fitch Ratings has completed a review of The Bear Stearns Companies, Inc.
(BSC) and subsidiaries counterparty exposure in global structured
finance (SF) transactions. The review was initiated as a result of
recent rating actions on BSC and subsidiaries and the proposed purchase
by JPMorgan Chase & Co. (JPMC).
The review acknowledges JPMC's guaranty (amended and restated today) of
all trading obligations and counterparty transactions of BSC and its
subsidiaries and JPMC management's assumption of operational oversight,
both effective on March 16, 2008. Counterparty obligations in the SF
transactions reviewed are subject to the JPMC guaranty.
The guaranty will remain in effect until 120 days following the closing
of the proposed acquisition. The only circumstances under which the
guaranty will expire earlier are if the acquisition agreement is
terminated or if the approval of BSC shareholders pursuant to the
acquisition agreement is not obtained. Fitch will conduct a review of
the counterparty exposure to reflect such circumstances should the
proposed acquisition be terminated.
For more information, see Fitch's separate press release issued today
'Fitch Comments on JPMorgan/Bear Amended Acquisition Agreement',
available on the Fitch Ratings web site at www.fitchratings.com.
Fitch's rating definitions and the terms of use of such ratings are
available on the agency's public site, 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.
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