Fitch Implications Clause Samples
The 'Fitch Implications' clause outlines how actions or events under the agreement may affect credit ratings assigned by Fitch Ratings, a major credit rating agency. It typically specifies the circumstances under which parties must notify each other of potential impacts on Fitch ratings, such as changes in financial condition, transactions, or other material developments. This clause helps ensure that all parties are aware of and can manage the risks associated with changes in credit ratings, thereby supporting informed decision-making and maintaining transparency regarding creditworthiness.
Fitch Implications. If an Initial Fitch Rating Event occurs and Party A does not take any of the measures described in Part 5(f)(iii) above (and regardless of whether reasonable efforts have been used to implement any of those measures), such failure shall not be or give rise to an Event of Default but shall constitute an Additional Termination Event which shall be deemed to have occurred on the next Local Business Day after:
(1) where Party A fails to post collateral as required by sub- paragraph (iii)(A) of this Part 5(f) pending the taking of any action under sub-paragraphs (iii)(B)(I), (iii)(B)(II) or (iii)(B)(III) of this Part 5(f), the fourteenth calendar day following the Initial Fitch Rating Event; or
(2) in any other case the thirtieth calendar day following the Initial Fitch Rating Event, with Party A as the sole Affected Party and all Transactions as Affected Transactions.
Fitch Implications. (i) If an Initial Fitch Rating Event occurs and is continuing and Party A does not take at least one of the measures described in Part 5(g)(i) above (and regardless of whether reasonable efforts have been used to implement any of those measures), such failure shall not be or give rise to an Event of Default but shall constitute an Additional Termination Event which shall be deemed to have occurred on the next Local Business Day after the thirtieth calendar day following the Initial Fitch Rating Event, with Party A as the sole Affected Party and all Transactions as Affected Transactions.
(ii) If, at the time a Subsequent Fitch Rating Event occurs and is continuing, Party A has provided collateral under the Credit Support Annex pursuant to subparagraph (i)(A) of Part 5(g) above and fails to continue to post collateral pending compliance with subparagraph (ii)(A) of Part 5(g) above or fails to post collateral under subparagraph (ii)(B) of Part 5(g) above, such failure will not be or give rise to an Event of Default but will constitute an Additional Termination Event with respect to Party A and will be deemed to have occurred on the later of the next Local Business Day after the tenth calendar day following such Subsequent Fitch Rating Event and the next Local Business Day after the thirtieth calendar day following any prior Initial Fitch Rating Event with Party A as the sole Affected Party and all Transactions as Affected Transactions.
(iii) Further, if a Subsequent Fitch Rating Event occurs and is continuing, it shall constitute an Additional Termination Event, even if Party A continues to post collateral as required by subparagraph (ii)(B) of Part 5(g) above, and notwithstanding Section 5(a)(ii), if Party A does not take the measures described in subparagraph (ii)(A) of Part 5(g) above (and regardless of whether reasonable endeavours have been used to implement any of those measures). Such Additional Termination Event will be deemed to have occurred on the next Local Business Day after the thirtieth calendar day following the Subsequent Fitch Rating Event with Party A as the sole Affected Party and all Transactions as Affected Transactions.
Fitch Implications. If an Initial Fitch Rating Event occurs and Party A does not take any of the measures described in subparagraph 7.4 above (and regardless of whether reasonable efforts have been used to implement any of those measures) such failure shall not be or give rise to an Event of Default but shall constitute an Additional Termination Event with respect to Party A which shall be deemed to have occurred on the next Local Business Day after (i) where Party A fails to post collateral in accordance with sub-paragraph 7.4(i) of this Part 5, the fourteenth calendar day following the Initial Fitch Rating Event; or (ii) in any other case, the thirtieth calendar day following the Initial Fitch Rating Event, with Party A as the sole Affected Party and all Transactions as Affected Transactions.
Fitch Implications. If an Initial Fitch Rating Event occurs and is continuing and Party A does not take any of the measures described in Part 5(g)(ii) above such failure shall not be or give rise to an Event of Default but shall constitute an Additional Termination Event with respect to Party A which shall be deemed to have occurred on the next Business Day after the thirtieth calendar day following the occurrence of such Initial Fitch Rating Event with Party A as the sole Affected Party and all Transactions as Affected Transactions.
Fitch Implications. If an Initial Fitch Rating Event occurs and is continuing and Party A does not take at least one of the measures described in Part 5(g)(i) above (and regardless of whether reasonable efforts have been used to implement any of those measures), such failure shall not be or give rise to an Event of Default but shall constitute an Additional Termination Event which shall be deemed to have occurred on the next Local Business Day after the thirtieth calendar day following the Initial Fitch Rating Event, with Party A as the sole Affected Party and all Transactions as Affected Transactions, provided that, notwithstanding any other provision of this Agreement, with regard to a failure to post collateral pursuant to Part 5(g)(i)(A), such failure will not constitute an Additional Termination Event until (i) a Hedge Collateral Account has been opened and (ii) at least 10 Business Days have elapsed since the day on which Party B first notified Party A that such Hedge Collateral Account has been opened and the details therefor.