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

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» Fitch Upgrades GreatAmerica Leasing Receivables

Fitch has taken the following rating actions on the lease-backed notes for GreatAmerica Leasing Receivables 2003-1, LLC (GALR 2003-1):

Classes A-3a, A-3b and A-4 affirmed at 'AAA';
Class B affirmed at 'AAA';
Class C upgraded to 'AA' from 'A+';
Class D upgraded to 'A' from 'BBB'.

In its review of the GALR 2003-1 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 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 April 17, 2006, 30-plus day delinquencies equaled 1.44% and cumulative net losses were 1.61%. In addition, the transaction also benefits from a reserve account ($3,147,587), over-collateralization ($1,843,288), and expected booked residual realizations.

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