TEXT-S&P corrects by affirming rtgs in Avondale Securities
OVERVIEW— On July 11, we affirmed and removed from CreditWatch negative our
long-term counterparty rating on Bank of Ireland .— The ratings on Avondale Securities’ class A1 and A2 notes are
weak-linked to the rating on Bank of Ireland.— Due to an administrative error, we did not affirm and remove from
CreditWatch negative the ratings in this transaction when we updated the
rating on Bank of Ireland on July 11.— We have now corrected this error by affirming and removing from
CreditWatch negative our ratings on both tranches of debt in Avondale
Securities to reflect the rating on Bank of Ireland.Standard & Poor’s Ratings Services today affirmed and removed from CreditWatch negative its
credit ratings on Avondale Securities S.A.’s class A-1 and A-2 notes (see list below). This
follows the same action taken on the support sponsor, Bank of Ireland (BOI),
on July 11, 2011.On July 11, we affirmed and removed from CreditWatch negative our ‘BB+’
long-term counterparty credit rating on BOI (see “Various Rating Actions Taken
On Irish Banks; Off Watch Neg”).The ratings on the class A-1 and A-2 notes are weak-linked to the rating on
BOI due to the support agreement obligating BOI to meet, under certain
conditions, payments due on the notes, and potential tax liabilities, as well
as BOI’s servicing of the policies.Due to an administrative error, we did not revise our ratings on both tranches
of debt in Avondale Securities when we updated our rating on BOI in July.
Today’s rating actions are to correct this error.RELATED CRITERIA AND RESEARCH— Various Rating Actions Taken On Irish Banks; Off Watch Neg, July 11,
2011— Use Of CreditWatch And Outlooks, Sept. 14, 2009— Methodology For Rating And Surveilling European Corporate
Securitizations, Jan. 23, 2008RATINGS LISTAvondale Securities S.A.EUR400 Million Floating-Rate Emergence Offset NotesClass RatingTo FromRatings Affirmed And Removed From CreditWatch NegativeA-1 BB+ (sf) BB+ (sf)/Watch NegBB+ (sf)/Watch Neg (SPUR) BBB+ (sf)/Watch Neg (SPUR)A-2 BB+ (sf) BB+ (sf)/Watch Neg
UPDATE 1-Ex-Michigan Gov. Granholm quits Dow Chemical board
* To host “The War Room” on Al Gore’s Current TVBy Ernest ScheyderOct 12 (Reuters) - Former Michigan Gov. Jennifer Granholm
has quit Dow Chemical’s board of directors to host a
political TV show on Al Gore’s Current TV.Granholm, who joined the board of the largest U.S. chemical
maker less than seven months ago, will launch “The War Room” on
the cable TV network this January.The show will be something Democrats will love, but “the
far right will hate it,” Granholm said in a Current TV
statement.Andrew Liveris, Dow’s chairman and chief executive, said
Granholm’s resignation was effective immediately. The move left
the board with 12 members.”While the tenure was brief, her experience, perspective
and contributions were beneficial, and we wish her well in her
new endeavors,” Liveris said.Granholm received nearly unanimous support from
shareholders at Dow’s annual meeting last May.
UPDATE 1-Goldman lowered tax bill by 10 mln pounds - report
* Goldman battled UK for five years on tax paymentOct 11 (Reuters) - Goldman Sachs Group Inc managed
to lower its tax bill by 10 million pounds last year after
having “shaken hands” with a top UK tax official, according to
a leaked document and reports in the British press.The UK government had been seeking a settlement regarding
more than 30 million pounds in back taxes it said Goldman owed,
which, along with interest, amounted to roughly 40 million
pounds, according to the Guardian newspaper.Thanks to a deal negotiated privately with Dave Hartnett,
the permanent secretary of Her Majesty’s Revenue and Customs
(HMRC), Goldman was able to pay just the accrued taxes and
avoid the 10 million pound interest payment.The government sought back taxes from a group of 22
financial firms in 2005 after uncovering a scheme to route
bonuses through offshore entities to avoid taxes. All of the
companies but Goldman settled, leading to a drawn-out legal
battle between the UK government and the Wall Street bank.Minutes of a meeting of top officials from the HMRC on Dec.
8, 2010, show a deal was finally reached after Hartnett “had
‘shaken hands’ with Goldman Sachs.”Other officials questioned the propriety of the agreement.A lawyer named Dean Rowland noted Goldman had “resisted for
five more years, raking up every conceivable point in the
tribunal, and putting up a ‘stooge’ witness when Mr Housden was
the obvious person to answer questions,” according to the
minutes. Michael Housden is the Goldman’s director of European
tax.Anthony Inglese, the HMRC’s general counsel, said he would
not support the deal if it were “unconscionable” and noted “the
difficulty all those present at this meeting were having in
justifying a settlement without an interest element.”Goldman spokesman David Wells declined to comment. HMRC did
not immediately return a request for comment.In a statement to the Guardian, the HMRC said its portrayal
of the issue was “incomplete and therefore fundamentally
flawed” but declined to provide more detail because of
“taxpayer confidentiality.”News of the tax-interest break was first reported by
Private Eye magazine.The 10 million pound tax-interest break is paltry next to
the $15.4 billion in compensation and benefits Goldman paid
last year. The bank also took a special charge of $465 million
in 2010 for special UK taxes on bonuses above 25,000 pounds.
