GreatAmerica Leasing Corporation - Company News - Fitch Upgrades GreatAmerica Leasing Receivables 2003-1

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Fitch Upgrades GreatAmerica Leasing Receivables 2003-1

Fitch

Fitch upgraded the following classes of GreatAmerica Leasing Receivables 2003-1, LLC (GALR 2003-1) lease-backed notes:

Class B upgraded to 'AAA' from 'AA';
Class C upgraded to 'A+' from 'A'.

In addition, the following are affirmed by Fitch:

Classes A-3a, A-3b, and A-4 at 'AAA';
Class D at 'BBB'.

In its review of the GALR 2003-1 transaction, Fitch noted increasing levels of credit enhancement available to the classes B and C notes. The continued increase in credit enhancement is a result of better than expected portfolio performance. The collateral continues to perform within Fitch's expectations and, under Fitch's analysis of the credit enhancement structure, the security can now withstand stress scenarios consistent with the upgraded rating and still make full payments to investors in accordance with the terms of the documents.

As of the reporting period ended Aug. 31, 2005, 30-plus-day delinquencies equal 1.04% and cumulative net losses are 1.45%. In addition, the transaction also benefits from a reserve account ($3,147,587), over-collateralization ($2,814,537), and expected booked residual realizations.

Fitch says it will continue to closely monitor these transactions and may take additional rating action in the event of changes in performance and credit enhancement measures.