(Repeat for additional subscribers)
July 11 (The following statement was released by the rating agency)
Fitch Ratings has affirmed Coral Capital Limited/Coral Capital LLC's asset-backed commercial
paper's (CP) Short-Term Rating at 'F1+sf' following a review of the programme.
KEY RATING DRIVERS
The affirmation is driven by the liquidity support provided by DZ Bank AG (DZ,
The affirmation follows a discussion with DZ management and takes into
consideration the conduit's performance, CP issuance, portfolio composition,
administrative procedures and systems as well as credit policy over the past 12
The programme contained 14 transactions as of 31 May 2014, all of which benefit
from fully supported liquidity provided by DZ. The fully supported liquidity
means the noteholders are not exposed to the credit risk of the transactions and
liquidity can be drawn to cover CP interest and principal without deductions for
Coral Capital Limited and Coral Capital LLC are special purpose,
bankruptcy-remote corporations organised under Irish and Delaware law,
respectively. The entities have been established to issue up to EUR10bn ECP and
USCP in aggregate with a maximum tenor of three months. Proceeds of CP issuance
are used to purchase interests in receivables and other financial assets,
including leases, loans and trade receivables. Coral Capital LLC has been set
into a dormant status within programme amendments implemented in December 2013.
Hence, there will be no issuance of USCP from the corporation unless it is
As of 31 May 2014, the portfolio primarily consisted of trade receivables (49%
of the portfolio) and lease receivables (30%). The remainder of the portfolio
was allocated to hire-purchases (15%), auto loans (2%) and some cash holdings.
Total outstanding CP was EUR128m, while funded assets in the programme were
If DZ's Short-term Issuer Default Rating (ST IDR) were downgraded, Coral's CP
would be downgraded. DZ is the liquidity provider, hedging agent and sponsor and
Coral's CP rating is highly dependent on DZ's ST IDR.