OREANDA-NEWS. June 30, 2015. Fitch Ratings has downgraded Arabella Finance Limited/Arabella Finance LLC's (Arabella) asset-backed commercial paper (CP) to 'F2sf' from 'F1+sf' and removed it from Rating Watch Negative (RWN).

KEY RATING DRIVERS
Arabella is a fully supported programme where the full liquidity risk and credit risk is covered by the liquidity provider, UniCredit Bank AG (Unicredit), and CP noteholders are not exposed to the performance of the underlying assets.

Fitch placed Arabella on RWN on 22 May 2015, following the downgrade of Unicredit's Short-term Issuer Default Rating (IDR) to 'F2' from 'F1+' (see 'Fitch Downgrades Unicredit Bank AG to 'A-'/'F2' on Support Revision; Outlook Negative' dated 19 May 2015) and its subsequent proposal to implement appropriate remedial actions to maintain the current CP rating. As no firm plan to remedy the sponsor's downgrade has been implemented to date or is due to be implemented shortly, the CP's rating has been downgraded to UniCredit's Short-term IDR. Fitch understands that UniCredit is still seeking to implement certain remedial actions (which may include guarantees or cash collateralisation) in the future, but no definitive timeline has yet been established.

Arabella's CP is fully supported by Unicredit as main liquidity provider. Unicredit's commitment under the transaction liquidity facility agreements ensures the full and timely repayment of all maturing CP notes if Arabella has insufficient funds on any CP maturity date. Arabella's CP rating is therefore linked to Unicredit's Short-term IDR.

RATING SENSITIVITIES
If UniCredit's Short-term IDR is upgraded or downgraded, the rating of Arabella's CP would also be upgraded or downgraded.

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 Arabella. 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.

Fitch did not undertake a review of the information provided about the underlying asset pools ahead of the transaction's initial closing. The subsequent performance of the transaction over the years is consistent with the agency's expectations given the operating environment and Fitch is therefore satisfied that the asset pool information relied upon for its initial rating analysis was adequately reliable.

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.

SOURCES OF INFORMATION
Communication with UniCredit, monthly investor reports.