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Fitch Rates GreatAmerica Securitization

Fitch

Fitch has rated the GreatAmerica Leasing Receivables Funding LLC, series 2005-1 (GALC 2005-1) as follows:

$57,531,477 class A-1 notes 'F1+';
$50,039,663 class A-2 notes 'AAA';
$76,897,110 class A-3 notes 'AAA';
$56,117,928 class A-4 notes 'AAA';
$11,873,818 class B notes 'AA';
$14,135,498 class C notes 'A'.

All classes privately placed pursuant to Rule 144A.

The class A rating reflects credit enhancement provided by the subordination of the class B notes (4.20%), the class C notes (5.00%), the initial reserve account (1.50%), the issuer's retained interest (5.70%), and the booked residual cash flows (5.82%). The class B rating reflects credit enhancement provided by the class C notes, the reserve account, the issuer's retained interest, and the residual cash flows. The class C rating reflects credit enhancement provided by the reserve account, the issuer's retained interest, and the residual cash flows. The ratings address the payment of interest and principal in accordance with the terms of the legal documents.

The initial discounted contract balance of GALC 2005-1 is approximately $282.8 million. At closing, the pool contains 24,473 contracts with a weighted average seasoning of approximately 10 months. Major equipment types in the pool are copiers and printers (44.76%), telephone and fax machines (18.92%), medical equipment (9.35%), point of sale equipment (6.81%), and computer hardware and software equipment (6.29%). No other single type of equipment makes up more that 4.0% of the aggregate discounted receivable balance. Geographic concentrations include: Florida (9.58%), Texas (7.40%), California (7.39%), New York (6.04%), and Illinois (5.20%).

In determining the required level of credit enhancement, Fitch took into consideration the performance of GreatAmerica's past securitizations, as well as its total managed portfolio.

Fitch analyzed cash flow models and assessed the trust's ability to pay off the notes under various stressed cash flow scenarios. In addition, Fitch applied a haircut to residuals, while incorporating a front-loaded, back-loaded, and GreatAmerica's actual loss curves to address the potential timing mismatch of residual receipts and small-ticket losses.

Ultimately, credit enhancement levels were sized to withstand multiples of expected losses at each rating level over the life of the transaction.

GreatAmerica Leasing Receivables Funding LLC, series 2005-1 will be the seventh GreatAmerica securitization rated by Fitch. GreatAmerica Leasing Receivables 2003-1 and 2004-1 are the only outstanding term transactions and are both performing within Fitch's expectations.