Fitch Rates Bank of America's Secured Asset Finance Company B.V.'s Issuance 'A'

Wed Mar 6, 2013 4:29pm EST

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(The following statement was released by the rating agency) NEW YORK, March 06 (Fitch) Fitch Ratings has assigned a rating of 'A' to Bank of America Corporation's (BAC) issuance from its Secured Asset Finance Company B.V. of $100,000,000 series 2013-3 secured notes due 2016. Repayment of these notes is unconditionally guaranteed by BAC. RATING ACTION AND RATIONALE Secured Asset Finance Company B.V. is unconditionally guaranteed by BAC and therefore the debt level rating of 'A' would change in conjunction with any changes to BAC's Issuer Default Ratings (IDRs). BAC's IDRs were affirmed on Oct. 10, 2012 with a Stable Outlook as part of Fitch's Global Trading and Universal Bank (GTUB) periodic review. BAC's IDRs are underpinned by the prospect of U.S. government support in the event of need. BAC's IDRs could be negatively pressured if Fitch's view of support changes. Please see 'Fitch Affirms Bank of America's Ratings at 'A/F1'; Rating Outlook is Stable' dated Oct. 10, 2012 for additional details. The rating on the notes is based entirely on the ratings of BAC. Fitch has given no consideration to any collateral provided, as Fitch has not evaluated, nor does it expect to review, the collateral policy or collateral assets backing the notes. Because BAC has fully and unconditionally guaranteed the due and punctual payment of all obligations of Secured Asset Finance Company B.V., it is Fitch's view that the notes rank pari passu with senior, unsecured obligations of BAC. Fitch acknowledges that the issuance is backed by collateral, but given that the collateral for the issuance can be substituted at any time according to the terms of the issuance, Fitch does not believe that the rating benefits from any uplift from the underlying collateral and equalizes the rating with BAC's senior unsecured debt rating due to the guarantee. RATING DRIVERS AND SENSITIVITIES - VRs and IDRs: The rating of this issuance is sensitive to any changes in the IDR of BAC. Ratings will move up or down in tandem with BAC's senior unsecured debt ratings. Support Ratings and Support Floor Ratings: Not applicable RATING DRIVERS AND SENSITIVITIES - Subordinated Debt and Other Hybrid Securities: Not applicable RATING DRIVERS AND SENSITIVITIES - Holding Company: Not applicable RATING DRIVERS AND SENSITIVITIES - Subsidiary and Affiliated Company Rating: Not applicable Fitch has assigned the following ratings: Secured Asset Finance Company B.V. --Senior debt at 'A'. Contact: Primary Analyst Joseph Scott Senior Director +1-212-908-0624 Fitch Ratings, Inc. One State Street Plaza New York, NY 10004 Secondary Analyst Christopher Wolfe Managing Director +1-212-908-0771 Committee Chairperson Joo-Yung Lee Managing Director +1-212-908-0560 Media Relations: Brian Bertsch, New York, Tel: +1 212-908-0549, Email: brian.bertsch@fitchratings.com. Additional information is available at www.fitchratings.com. The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has been compensated for the provision of the ratings. In addition to the source(s) of information identified in Fitch's Master Criteria, these actions were additionally informed by information provided by the companies. Applicable Criteria and Related Research: --'Risk Radar' (Jan. 16, 2013); --'U.S. Banks: Rationalizing the Branch Network (Witness the Incredible Shrinking Branch Network)' (Sept. 17, 2012); --'U.S. Banks: Mortgage Representations and Warranties (Banks Increase Reserves; Uncertainty Remains)' (Aug. 20, 2012) --'Global Financial Institutions Rating Criteria' (Aug. 15, 2012); --'Rating FI Subsidiaries and Holding Companies' (Aug. 10, 2012); --'Treatment of Unrealized Losses in U.S. Bank Capital Rule Proposal (Pro-Cyclical Capital Policy to Create Greater Capital Volatility for Banks)' (Aug. 7, 2012); --'Basel III: Return and Deleveraging Pressures' (May 17, 2012); --'Assessing and Rating Bank Subordinated and Hybrid Securities' (Dec. 05, 2012). Applicable Criteria and Related Research Risk Radar Update here U.S. Banks: Rationalizing the Branch Network (Witness the Incredible Shrinking Branch Network) here U.S. Banks: Mortgage Representations and Warranties (Banks Increase Reserves; Uncertainty Remains) here Global Financial Institutions Rating Criteria here Rating FI Subsidiaries and Holding Companies here Treatment of Unrealized Losses in U.S. Bank Capital Rule Proposal (Pro-Cyclical Capital Policy to Create Greater Capital Volatility for Banks) here Basel III: Return and Deleveraging Pressures here Assessing and Rating Bank Subordinated and Hybrid Securities here ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: here. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE.

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