B&B CDS payment triggered by missed interest -ISDA

LONDON, July 9 (Reuters) - A credit derivatives committee has ruled that the non-payment of interest on Tier 2 bonds by British mortgage lender Bradford & Bingley (BB_p.L) will trigger payment under credit default swap contracts, the International Swaps and Derivatives Association said on Thursday.

B&B (BB_p.L) said in late May it would not pay coupons on 325 million pounds ($534 million) of Tier 2 bonds, due June 16, June 30, and July 20 and traders last week said a grace period had expired on the first payment.

The ISDA said on its web site on Thursday that all 15 members of the committee agreed that a credit event had occurred on June 30. (Reporting by Natalie Harrison and Jane Merriman; Editing by Greg Mahlich)