NEW YORK, Mar 19, 2012 (BUSINESS WIRE) -- Fitch Ratings expects to rate Great America Leasing Receivables Funding, L.L.C. Series 2012-1 as detailed below:
-- $88,353,000 class A-1 notes 'F1+sf';
-- $73,079,000 class A-2 notes 'AAAsf'; Outlook Stable;
-- $101,050,000 class A-3 notes 'AAAsf'; Outlook Stable;
-- $87,915,000 class A-4 notes 'AAAsf'; Outlook Stable;
-- $16,052,000 class B notes 'AAsf'; Outlook Stable;
-- $11,028,000 class C notes 'Asf'; Outlook Stable.
Fitch's stress and rating sensitivity analysis are discussed in the presale report titled 'Great America Leasing Receivables Funding, L.L.C. Series 2012-1', dated March 19, 2011, which is available on Fitch's web site. The presale report details how Fitch addresses the key rating drivers which are summarized below.
High Concentration of Copiers/Printers: Approximately 76.4% of series 2012-1 is consists of copiers/printers which were primarily originated by the office equipment group (OEG). This concentration is higher than in previous securitizations, which consisted of 38% -- 73% of this collateral type. Despite the increasing concentration, copiers/printers has historically performed better than other equipment types within GreatAmerica's portfolio.
Improving Asset Performance: GreatAmerica's managed static pool data have experienced improved loss performance for more recent vintages of the managed portfolio. Furthermore, all transactions issued by GreatAmerica have experienced cumulative net losses (CNLs) inside of Fitch's initial expectations.
Sufficient Credit Enhancement: All classes benefit from a reserve account that will be funded at 1.50% of the initial aggregate discounted contract balance (ADCB) and overcollateralization (OC) of 6.09%. The class A and B notes benefit from subordination of 6.75% and 2.75%, respectively. Overall, initial hard credit enhancement (CE) is slightly down from 2011-1. Additionally, all classes benefit from 6.49% in booked residual realizations.
Quality of Origination, Underwriting, and Servicing: GreatAmerica has demonstrated adequate abilities as originator, underwriter, and servicer, as evidenced by historical delinquency and loss performance of securitized trusts and the managed portfolio.
Integrity of Legal Structure: The legal structure of the transaction should provide that a bankruptcy of the GreatAmerica would not impair the timeliness of payments on the securities.
Additional information is available at ' http://www.fitchratings.com '. The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has been compensated for the provision of the ratings.
Applicable Criteria and Related Research:
-- 'Criteria for Rating U.S. Equipment Lease and Loan ABS' Jan. 11, 2012;
-- 'Global Structured Finance Rating Criteria' Aug. 4, 2011.
Applicable Criteria and Related Research: GreatAmerica Leasing Receivables Funding, L.L.C. Series 2012-1 (US ABS) http://www.fitchratings.com/cr...me.cfm?rpt_id=674633
Criteria for Rating U.S. Equipment Lease and Loan ABS http://www.fitchratings.com/cr...me.cfm?rpt_id=663732
Global Structured Finance Rating Criteria http://www.fitchratings.com/cr...me.cfm?rpt_id=646569
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SOURCE: Fitch Ratings
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