OREANDA-NEWS. Fitch Ratings says it is monitoring the on-going remedial action for eight Japanese structured finance (SF) transactions following the agency's recent downgrade of a major foreign bank that acts as an account bank for the transactions.

Under Fitch's SF counterparty criteria, account banks rated below 'A' or 'F1' are deemed ineligible to support notes rated 'AAAsf'. Notes rated 'AAAsf' that use the bank as an account bank are at risk of downgrade, unless remedial action is completed within 30 calendar days of the bank's downgrade.

Fitch understands from the relevant transaction parties that the process of replacing the downgraded account bank with another that is eligible to support 'AAAsf' ratings is underway.

Fitch does not expect the ratings on the affected transactions to be impacted if remedial action is completed within the expected time frame. Fitch will closely review the progress of any remedial action and consider taking rating action if such actions are not implemented fully within the specified period.

The transactions that are affected are:
DTC Four Funding Limited
DTC Five Funding Limited
DTC Six Funding Limited
DTC Seven Funding Limited
DTC Eight Funding Limited
Leopard Two Funding Limited
L-MAP One Funding Limited
L-STaRS One Funding Limited