The ratings on U.K. SPVs remain unaffected by the uncertainty surrounding the implementation of the new International Financial Reporting Standards (IFRS) and the potential tax implications for these SPVs, analysts at Fitch Ratings said.

Since the mid-1990's, the taxable profit of an SPV with respect to derivative contracts and liabilities has been computed based on the accounting profit, which has broadly corresponded to the cash surplus in transactions. The adoption of IAS 39, the international accounting standard that addresses accounting for financial instruments, could result in a change in accounting profit due to derivative valuation, even though the cash position of the deal remains neutral, said analysts.

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