Welsh Road was established to issue CP, the proceeds of which are used to purchase variable funding note (VFN) advances issued by
KEY RATING DRIVERS
The rating of the CP notes is directly linked to that of BHI, as guarantor of the unconditional and irrevocable surety issued by its subsidiary, Columbia. BHI's Long-Term 'AA-' rating correlates to a Short-Term 'F1+' rating. Additional information on long- and short-term ratings correlations can be found at 'www.fitchratings.com'.
The rating remains sensitive to the rating migration of BHI. A Long-term 'AA-' rating correlates to an 'F1+' Short-Term rating, but lower long-term ratings have a correlation that may overlap multiple short-term ratings. Specifically, a one-notch downgrade of BHI's Long-Term IDR to 'A+' from 'AA-' would likely have no impact on the current rating; however, a downgrade to 'A-' would result in an 'F1sf' or 'F2sf' rating. Such a determination would be decided by a ratings committee, taking into consideration input provided by Fitch's
USE OF THIRD-PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G-10
No third-party due diligence was provided or reviewed in relation to this rating action.
Additional information is available at www.fitchratings.com.
Counterparty Criteria for Structured Finance and Covered Bonds (pub. 01
Global Rating Criteria for Single- and Multi-Name Credit-Linked Notes (pub.
Global Structured Finance Rating Criteria (pub.
Dodd-Frank Rating Information Disclosure Form
Source: Fitch Ratings