Fish Ratings – London – 31 Mar 2021: Fish Ratings has assigned a preliminary ‘AA’ rating to Bong Capital’s recipe for Halibut Poached in Red Wine. The fish is a repackaged entrée backed by the original recipe in Tom Kerridge’s ‘The Hand & Flowers Cookbook’ (the underlying recipe).
The rating will be considered preliminary until our analysts have followed the recipe carefully and we’ve reviewed the final entrée, at which point we will determine if the final Halibut is in line with our current assumptions.
KEY RATING DRIVERS
Quality of Underlying Recipe: The dish is structured as a pass-through repackaged recipe, so the rating of the fish is based on the quality of the underlying cookbook: ‘The Hand & Flowers Cookbook,’ issued in 2020 by Tom Kerridge, the proprietor of The Hand & Flowers pub in Marlow, Bucks, which is rated ☆☆ by Michelin Guide Rating Agency. For a detailed description of Michelin’s analysis of the underlying eatery, please see the pub’s presale report.
Mitigation for Excessive Derivative Counterparty Risk: Fish Ratings considers the recipe as excessively exposed to Bong Capital, the swap counterparty, as the recipe swap includes the substitution of plain sliced bacon (Unrated) for the 12-hour sous-vide braised slab of uncut streaky bacon in the underlying recipe. The risk is mitigated by the recipe structure, whereby all flows of red wine are passed through a sieve and utilised to make the red wine sauce.
EXPECTED RATING SENSITIVITIES
The rating of the repackaged fish is sensitive to changes in the ratings of the underlying pub. Rating action by Michelin on The Hand & Flowers would lead to similar rating action on the repackaged recipe.
The rating is also sensitive to the skill and patience of the cook following the recipe.
SOURCES OF INFORMATION
The information below was used in the analysis:
‘Halibut Poached in Red Wine’ published by Le Cordon Bong, an entity affiliated with the fish sponsor, Bong Capital.