OREANDA-NEWS. Fitch Ratings has affirmed COREALCREDIT BANK AG's (Corealcredit) ratings and subsequently withdrawn the ratings as Corealcredit is undergoing a reorganisation. Accordingly, Fitch will no longer provide ratings or analytical coverage for Corealcredit.

A full list of rating actions is available at the end of this rating action commentary. A separate rating action commentary on Corealcredit's mortgage covered bonds will be published shortly.

KEY RATING DRIVERS - COREALCREDIT'S IDRS, SR AND SENIOR DEBT
The alignment of Corealcredit's IDRs with those of its parent, Aareal Bank AG (Aareal, BBB+/Stable/F2/bbb+) was based on our view that Aareal had a strong propensity to support Corealcredit, underpinned by a control and profit transfer agreement between both entities, which contractually obliges Aareal to compensate any annual losses arising at Corealcredit.

In addition, Aareal has been increasingly managing Corealcredit's capital, funding and liquidity at group level since its acquisition in 2014, as shown most notably by Corealcredit's integration within Aareal's cash pooling organisation.

On 15 June 2015, Aareal completed the transfer of Corealcredit's banking operations and 95% of its outstanding assets and liabilities (including its mortgage and public cover bonds and its cover pools) into Aareal. Aareal will continue to operate the remaining legal entity Corealcredit as a non-operating entity, which has returned its banking licence and has about EUR350m total assets remaining. The control and profit transfer agreement is unaffected. Corealcredit's outstanding debt has been entirely transferred to Aareal.

The affirmation of Corealcredit's rated senior unsecured note (XS0880057087) reflects the note's transfer to Aareal. The note's rating remains aligned with Aareal's Long-term IDR. Aareal's ratings are unaffected by the rating action.

RATING SENSITIVITIES - COREALCREDIT'S IDRS, SR AND SENIOR DEBT
The rating of the senior unsecured note (XS0880057087) is subject to the same sensitivities as Aareal's Long-term IDR, which are described in the latest rating action commentary on Aareal ('Fitch Downgrades Aareal Bank AG to 'BBB+' on Support Revision; Outlook Stable', published on 19 May 2015).

The rating actions are as follows:

COREALCREDIT BANK AG:
Long-term IDR: affirmed at 'BBB+'/Outlook Stable; withdrawn
Short-term IDR: affirmed at 'F2'; withdrawn
Support Rating: affirmed at '2'; withdrawn
Senior unsecured notes (XS0880057087): affirmed at 'BBB+' and transferred to Aareal Bank AG