(The following statement was released by the rating agency)
NEW YORK, June 27 (Fitch) Fitch Ratings has assigned a rating of
'A' to Bank of
America Corporation's (BAC) Secured Asset Finance Company LLC's
notes program. Fitch had already assigned a rating of 'A' to
Finance Company B.V's senior secured notes in March 2013.
Repayment of both
entity's notes are unconditionally guaranteed by BAC.
KEY RATING DRIVERS:
The ratings of Secured Asset Finance Company LLC and Secured
Asset Finance B.V.
are unconditionally guaranteed by BAC and therefore the debt
level rating of 'A'
would change in conjunction with any changes to BAC's Issuer
(IDRs). BAC's IDRs were affirmed on May 16, 2013 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
Please see 'Fitch Affirms Bank of America's IDR at 'A'; Upgrades
Rating to 'a-' dated May 16, 2013 for additional details.
The rating on the notes program is based entirely on the ratings
of BAC. Fitch
has given no consideration to any collateral provided, as Fitch
evaluated, nor does it expect to review, the collateral policy
assets backing the notes. Because BAC has fully and
the due and punctual payment of all obligations of Secured Asset
LLC and 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:
RATING DRIVERS AND SENSITIVITIES - Subordinated Debt and Other
RATING DRIVERS AND SENSITIVITIES - Holding Company:
RATING DRIVERS AND SENSITIVITIES - Subsidiary and Affiliated
Fitch has assigned the following ratings:
Secured Asset Finance Company LLC
--Senior debt at 'A'.
Fitch Ratings, Inc.
One State Street Plaza
New York, NY 10004
Justin Fuller, CFA
Media Relations: Brian Bertsch, New York, Tel: +1 212-908-0549,
Additional information is available at www.fitchratings.com.
In addition to the source(s) of information identified in
Criteria, these actions were additionally informed by
information provided by
Applicable Criteria and Related Research:
--'Risk Radar' (Jan. 16, 2013);
--'U.S. Banks: Rationalizing the Branch Network (Witness the
Shrinking Branch Network)' (Sept. 17, 2012);
--'U.S. Banks: Mortgage Representations and Warranties (Banks
Uncertainty Remains)' (Aug. 20, 2012)
--'Global Financial Institutions Rating Criteria' (Aug. 15,
--'Rating FI Subsidiaries and Holding Companies' (Aug. 10,
--'Treatment of Unrealized Losses in U.S. Bank Capital Rule
(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'
Applicable Criteria and Related Research:
U.S. Banks: Rationalizing the Branch Network (Witness the
U.S. Banks: Mortgage Representations and Warranties (Banks
Global Financial Institutions Rating Criteria
Risk Radar Update
Rating FI Subsidiaries and Holding Companies
Treatment of Unrealized Losses in U.S. Bank Capital Rule
Capital Policy to Create Greater Capital Volatility for Banks)
Basel III: Return and Deleveraging Pressures
Assessing and Rating Bank Subordinated and Hybrid Securities
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