The court ruling handed down early this week in U.S. Bankruptcy Court in New York on Lehman’s swap termination could have ratings implications for U.S. structured finance transactions that include swap agreements.  

Moody’s Investors Service said that decision may have profound effects on structured finance transactions because it challenges long-held assumptions relating to the subordination of swap termination payments to a swap counterparty following a swap counterparty bankruptcy.  The rating agency said is in the process of determining which of its rated transactions include similar provisions and that therefore could be affected by the decision.  

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