April 3 (The following statement was released by the rating agency)
Fitch Ratings has upgraded Atlantis Two Funding Corporation's (Atlantis 2) asset-backed commercial paper's (ABCP) Short-term rating at 'F1+sf' and removed it from Rating Watch Positive.
KEY RATING DRIVERS
The upgrade follows the execution of the amendment to terminate the CDS entered into between Atlantis Finances Companies and Rabobank Netherlands and Rabobank USA. Subsequent to the termination of the CDS, the CP investors are no longer exposed to the credit risk of the underlying reference portfolio. The outstanding CP issued by Atlantis 2 is cash collateralised by funds held at Rabobank ('AA'/Stable/'F1+'). Therefore CP investors are solely exposed to the credit risk of Rabobank.
In January Fitch was informed by Rabobank of its intention to wind down Atlantis 2 in an orderly and timely manner. The termination of the CDS is part of the unwind process.
The notes are credit linked to Rabobank's Short-term Issuer Default Rating (IDR). If this was downgraded, it would automatically result in a downgrade of the notes.
Atlantis 2 is a bankruptcy remote, special-purpose, Delaware-based corporation established to issue up to USD0.503bn of CP with maximum maturities of up to 95 days. At end of January 2013, the face value of the CP outstanding to Atlantis 2 was approximately USD0.48bn with maturity up to July 2013.