OREANDA-NEWS. Fitch Ratings has affirmed Corelux S.A./Corelux LLC's (collectively Corelux) asset-backed commercial paper (ABCP) rating at 'F1sf' following an annual review of the programme.

KEY RATING DRIVERS
The affirmation is driven by the liquidity support provided by Bayerische Landesbank (BLB, A-/Stable/F1).

The affirmation follows a discussion with BLB'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.

TRANSACTION CHARACTERISTICS
The programme contained 14 transactions as of end August 2015, all of which benefit from fully supported liquidity provided by BLB. The fully supported liquidity means that CP holders are not exposed to the credit risk of the transactions and liquidity can be drawn to cover the full face value of the CP upon its maturity date.

Corelux is a fully supported multi-seller ABCP conduit. The programme can issue European commercial paper and US commercial paper with a maximum tenor of 270 days. CP is issued to fund the purchase of eligible assets such as trade receivables, loans and leases. All assets funded by Corelux are fully supported by transaction-specific liquidity facilities.

As of 31 August 2015, the portfolio primarily consisted of trade receivables (60.1% of the portfolio) and lease receivables (39.9%) and the total outstanding CP was EUR898.1m.

RATING SENSITIVITIES
If BLB's Short-term Issuer Default Rating (ST IDR) was downgraded, the rating of Corelux's CP would be downgraded. Corelux's CP would be upgraded if BLB's ST IDR was upgraded.

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 asset pool and the transaction. 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 pool 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.