OREANDA-NEWS. Fitch Ratings has affirmed Coral Capital Limited/Coral Capital LLC's asset-backed commercial paper (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 (AA-/Stable/F1+).

The affirmation follows a discussion with DZ's 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 months.

The programme contained 17 transactions as of 30 April 2015, 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 defaulted assets.

RATING SENSITIVITIES
If DZ's Short-term Rating is downgraded, this would likely result in the downgrade of Coral's CP as DZ is the liquidity provider, hedging agent and sponsor. Coral's CP rating is highly dependent on DZ's rating.

TRANSACTION CHARACTERISTICS
Coral Capital Limited and Coral Capital LLC are special purpose, bankruptcy-remote corporations organised under Irish and Delaware law, respectively. The entities were 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 was set into a dormant status in December 2013. Hence, there will be no issuance of USCP from the corporation unless it is activated again.

As of 30 April 2015, the portfolio primarily consisted of lease receivables (45% of the portfolio) and trade receivables (39%). The remainder of the portfolio was allocated to hire-purchases (14%), auto loans (2%) and some cash holdings. Total outstanding CP was EUR620m, while funded assets in the programme were about EUR1,033m.

DUE DILIGENCE USAGE
No third party due diligence was provided or reviewed in relation to this rating action.

DATA ADEQUACY
Fitch has checked the consistency and plausibility of the information it has received about the performance of the Coral programme. There were no findings that were material to this analysis. Fitch has not reviewed the results of any third party assessment of the asset portfolio information or conducted a review of origination files as part of its ongoing monitoring.

Overall, Fitch's assessment of the information relied upon for the agency's rating analysis according to its applicable rating methodologies indicates that it is adequately reliable.