Fitch cuts Grand Bills view to negative

Fitch Ratings said it revised the outlook on Grand Bills Finance Co. to negative from stable, and affirmed its long-term foreign-currency issuer default rating at BBB-, short-term issuer default rating at F3, national long-term rating at A(twn) and national short-term rating at F1(twn).

The outlook revision follows a series of actions by Fitch in placing several asset-backed commercial-paper programs on Rating Watch negative. The agency said it is concerned that the deteriorated credit profile of those programs, for which Grand Bills acts as a committed liquidity provider, could negatively impact the company's liquidity.

Fitch noted that Grand Bills is working on contingency plans to cope with the possible impact on liquidity. The plans include the possible restructuring of the programs by replacing underlying assets with higher-rated securities in order to restore rating levels, as well as contingent liquidity arrangements, the agency said.

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