However, according to the Isda spokeswoman, this language was removed from the most recent drafts, after negative feedback from end-users. “We now include language relevant to a determination that a credit event has occurred, and the publicly available information has to create a reasonable inference that a credit event has occurred,” she told RiskNews.
S&P did not respond to RiskNews’ invitation to comment on the issue. However, it is believed that the ratings agency will issue a new statement within a week regarding credit derivatives documentation language currently being considered by an Isda working group.
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