March 22 (The following statement was released by the rating agency)
LONDON, March 22 (Fitch) Fitch Ratings has affirmed Atlantis One Funding
Corporation's (Atlantis 1) asset-backed commercial paper (ABCP) Short-term
rating at 'F1+sf'. The agency has also placed Atlantis Two Funding Corporation's
(Atlantis 2) ABCP 'F2sf' Short-term rating on Rating Watch Positive (RWP).
The rating actions follow the announcement by the programme sponsor Rabobank
('AA'/Stable/'F1+') of the termination of the CDS entered into between Atlantis
Finance Companies (as defined below) and Rabobank Netherland and Rabobank USA.
Subsequent to the termination of the CDS, the CP investors will no longer be
exposed to the credit risk of the underlying reference portfolio. The
outstanding CPs issued by Atlantis 1 and Atlantis 2 will be cash collateralised
by funds held at Rabobank. Therefore CP investors are solely exposed to the
credit risk of Rabobank. Consequently, Fitch has placed Atlantis 2's ABCP
'F2sf' Short-term rating on RWP.
In January Fitch was informed by Rabobank of its intention to wind down Atlantis
1 and Atlantis 2 in an orderly and timely manner. The proposed termination of
the CDS is part of the unwind process of the programmes.
After the termination of the CDS, the notes' rating will be credit linked to the
Short-term Issuer Default Rating (IDR) of Rabobank. If the Short-term IDR of
Rabobank is downgraded, this would automatically result in the downgrade of the
Atlantis 1 and Atlantis 2 are bankruptcy remote, special-purpose, Delaware-based
corporations established to issue up to USD13.8bn and USD0.503bn of CP with
maximum maturities of up to 364 and 95 days, respectively.
At end-January 2013, the face value of the CP outstanding to Atlantis 1 was
approximately USD13.2bn and to Atlantis 2 was approximately USD0.48bn with
maturities up to July 2013.