Fitch rates Private Export program AA+/F1+

Fitch Ratings said it assigned ratings of AA+/F1+ to Private Export Funding Corp.’s U.S. medium-term note program.

The agency also assigned an expected rating of AA+(EXP) to the inaugural offering of unsecured notes under the program.

Private Export expects to use the net proceeds for repayment of short-term indebtedness and for general corporate purposes.

Like the company’s commercial paper, the medium-term notes are legally considered short-term debt according to the amended guarantee and credit agreement between the Export-Import Bank of the U.S. (Ex-Im) and Private Export, because they will have maturities of less than five years, Fitch explained.

Private Export’s long-term issuer default rating and senior secured ratings are directly linked to the U.S. sovereign rating (AAA/F1+/stable), based on the agency’s view of the U.S. government's financial support for Ex-Im and other government institutions.

Fitch said it believes that Private Export is of highest credit quality as all loans made by Private Export are guaranteed or insured by Ex-Im or other U.S. government institutions, whose obligations are backed by the full faith and credit of the U.S. government.

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