Bunge Asset Funding Corp.'s $700MM ABCP Prog Rtd `F1' By Fitch.

Business Editors

NEW YORK--(BUSINESS WIRE)--Aug. 28, 2000

Bunge Asset Funding Corp.'s (BAFC) $700 million asset-backed commercial paper program, sponsored by Bunge International Limited, is rated `F1' by Fitch.

The commercial paper (CP) rating is based on the quality of the inter-company loans pooled in a master trust structure and represented by a series 2000-1 variable funding certificate (S2000-1 VFC), the structure of the 100% liquidity support and the financial strength of the liquidity providers, the credit support in the form of a 15% letter of credit (LOC), the program's sound legal structure, and Bunge Management Services' servicing capabilities.

BAFC is a bankruptcy-remote, Delaware special-purpose vehicle (SPV) established for the sole purpose of issuing 4(2) CP to fund advances against a S2000-1 VFC issued by a Master Trust. The S2000-1 VFC will represent a pool of short-term (180 days or less) inter-company loans made to designated subsidiaries of Bunge Finance Ltd., a Bermuda based corporation, and Bunge Finance North America Inc., a Delaware corporation. The CP will have maturities of no more than 180 days. The maximum face amount of CP outstanding at any one time will not exceed $700 million.

The sellers of the inter-company loans, Bunge Finance North America Inc. and Bunge Finance Ltd., representing U.S. and foreign affiliates, respectively, will sell the loans to Bunge Funding Inc., a Delaware SPV, on a periodic basis. Bunge Funding Inc. will, in turn, transfer the loans to the Bunge Master Trust via a pooling agreement. The Bunge Master Trust will issue the S2000-1 VFC. BAFC will use the proceeds from the issuance of CP to fund advances against the S2000-1 VFC.

Bunge Management Services, Inc. will service the purchased inter-company loans for the Bunge Master Trust. The Chase Manhattan Bank will act as Collateral Agent for the CP, the liquidity facility and the LOC banks. The Chase Manhattan Bank will also serve as the liquidity agent and administrator for the liquidity facility.

Liquidity support will be provided by a syndicate of `F1' or higher rated liquidity banks or financial institutions in the form of a 364-day, revolving liquidity facility. The purpose of the liquidity facility will be to ensure timely funding of maturing CP, or to fund advances under the S2000-1 VFC, in a maximum amount at any time equal to $700 million. The liquidity facility will be required to fund an amount equal to the face value of all CP outstanding should any inter-company loan be past due for more than three (3) consecutive business days.

Credit support is in the form of an LOC for the benefit of the liquidity providers. The size of the LOC will be maintained at 15% of the maximum amount of the liquidity facility and reset quarterly. Additionally, Bunge International Limited will provide a guaranty that ensures prompt payment and reimbursement of obligations under the LOC.

Fitch is an international rating agency that provides global capital market investors with the highest quality ratings and research. Dual headquartered in New York and London with a major office in Chicago, Fitch rates entities in 75 countries and has some 1,100 employees in more than 40 local offices worldwide. The agency, which is a combination of Fitch IBCA and Duff & Phelps Credit Rating Co., provides ratings for Financial Institutions, Insurance, Corporates, Structured Finance, Sovereigns and Public Finance Markets worldwide.