Last week Moody's Investors Service withdrew its short-term P-1 rating on Bavaria Securitization Limited, a U.K.-based conduit sponsored by Bayerische Hypo- und Vereinsbank (HVB). According to sources at Moody's, the withdrawal was the result of HVB winding down the conduit in favor of Arabella Funding Limited, a replacement U.K. conduit that HVB established in 2001. Bavaria was established back in 1995.
The bank stopped using Bavaria to fund new transactions following Arabella's launch and began transferring assets out of the Bavaria last year, financing them either through the new conduit or other means. There is no outstanding paper from Bavaria.