S&P Upgrades, Affirms GreatAmerica Leasing Notes
S&P Upgrades, Affirms GreatAmerica Leasing NotesStandard & Poor's Ratings Services raised its ratings on four classes of subordinated notes from GreatAmerica Leasing Receivables 2004-1 LLC and GreatAmerica Leasing Receivables Funding LLC's Series 2005-1. Concurrently, S&P affirmed its ratings on three classes from both transactions. The upgrades reflect better-than-expected performance of the underlying collateral pools and increased credit enhancement (as a percentage of the current pool balances) available to cover losses for these transactions as their collateral pools continue to amortize. The 2004-1 and 2005-1 securitizations are backed by pools of small-ticket lease contracts. The underlying equipment primarily consists of copiers, printers, telephone systems, and medical equipment. As of the September distribution date, series 2004-1 and 2005-1 had pool factors of 21.59% and 43.76%, respectively. Each transaction experienced lower-than-expected delinquencies and cumulative net losses. In addition, the reserve accounts for these transactions have hit their floors of 1% of the initial pool balances and are growing as a percentage of the current collateral pool balances. Each transaction's overcollateralization is currently at its respective target of the current collateral pool balance: 6.5% for series 2004-1 and 5.7% for 2005-1. "We expect the overcollaterizations of both deals to remain at the same percentages of their current collateral pool balances going forward. Standard & Poor's believes the remaining credit support is sufficient to support the notes at the raised and affirmed rating levels," S&P said. * Ratings Raised (Class B): GreatAmerica Leasing Receivables 2004-1 LLC: from 'AA' to 'AAA' GreatAmerica Leasing Receivables Funding LLC's Series 2005-1: from 'AA' to 'AAA' * Ratings Affirmed: GreatAmerica Leasing Receivables 2004-1 LLC: Class A-4 affirmed at 'AAA' GreatAmerica Leasing Receivables Funding LLC's Series 2005-1: Class A-3, A-4 affirmed at 'AAA' Thursday, October 18, 2007 |
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