GreatAmerica Leasing Corporation - Company News - Fitch Upgrades GreatAmerica Leasing Receivables 2004-1, LLC

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Fitch Upgrades GreatAmerica Leasing Receivables 2004-1, LLC

BUSINESS WIRE

CHICAGO--(BUSINESS WIRE)--Fitch Ratings has taken the following rating actions on the lease-backed notes for GreatAmerica Leasing Receivables 2004-1, LLC (GALR 2004-1).

--Classes A-3 and A-4 affirmed at 'AAA';

--Class B upgraded to 'AAA' from 'AA';

--Class C upgraded to 'A+' from 'A'.

In its review of the GALR 2004-1 transaction, Fitch noted increasing levels of credit enhancement available to all classes of 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 securities can now withstand stress scenarios consistent with the upgraded ratings and still make full payments to investors in accordance with the terms of the documents. As of May 21, 2007, 30+ day delinquencies equaled 1.72% and cumulative net losses were 1.68%. In addition, the transaction also benefits from a reserve account ($2,468,240), over-collateralization ($4,443,809), and expected booked residual realizations.

Fitch will continue to closely monitor this transaction and may take additional rating actions in the event of changes in performance and credit enhancement measures.

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.