Bavaria Group CP Rated `F1+', Class A-1 MTNs Rated `AAA'.

NEW YORK--(BUSINESS WIRE)--Dec. 16, 1999--

Fitch IBCA rates Bavaria Funding Finance I LLC (BFF) $4.0 billion asset-backed commercial paper (CP) program `F1+'. In addition, BAV Jersey (BAV) medium term notes (MTNs) are rated as follows: class A-1 notes are rated `AAA', class A-2 notes are rated `AA', class B-1 notes are rated `BBB' and class B-2 notes are rated `BB'. Fitch IBCA assigns its `AAA' counterparty rating to Bavaria Delaware Finance I LLC (BDF).

The ratings are based upon the strength of the transaction's capital structure, the various collateral quality tests and liquidity test, the investment guidelines and the initial Administrative Agent.

The program's administrator is Bayerische Hypo- und Vereinsbank AG, New York Branch. Fitch IBCA rates the bank (`AA/F1+')

BFF and BAV will issue the commercial paper and notes, respectively. Under separate loan agreements, BFF and BAV will loan the proceeds of the CP and notes to BDF. BDF will use the proceeds of the loans to engage in credit risk management and financing operations, including total rate of return swaps, credit default swaps, and reverse repurchase agreements, enter into hedge agreements, purchase authorized investments and other incidental activities.

The CP will be exempt from registration under section 4(2) of the Securities Act with maximum maturities of 270 days. Liquidity support comes in form of a third party credit agreement and through liquidity inherent with the transactions entered into by BDF. The size of the credit facility is dynamic and depends on the type, rating, and tenor of transaction entered into by BDF.