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By: Standard and Poor's on September 15th, 2013


S & P: Four Ratings Raised

S & P: Four Ratings Raised

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Four Ratings Raised From GreatAmerica Leasing Receivables Funding L.L.C.; 10 Ratings Affirmed

Primary Credit Analyst:
Srabani C Chandra-Lal, New York (1) 212-438-5036 ; srabani.chandra-lal@standardandpoors.com

Secondary Contact:
Mark M Risi, New York (1) 212-438-2588 ; mark.risi@standardandpoors.com

OVERVIEW

  • We raised our ratings on the Class B and C notes from both Series 2011-1 and Series 2011-2 from GreatAmerica Leasing Receivables Funding LLC.
  • At the same time, we affirmed our ratings on 10 classes of notes from Series 2011-1, 2012-1, and 2013-1 from the same transaction.
  • The upgrades reflect the better-than-expected collateral performance to date and the growth in hard credit support as a percent of the amortizing collateral balance.
  • The transactions are securitizations of small-ticket equipment leases/loans originated by GreatAmerica Financial Services Corp., formerly known as GreatAmerica Leasing Corp.

NEW YORK (Standard & Poor's) Sept. 16, 2013--Standard & Poor's Ratings Services today raised its ratings on the Class B and class C notes from GreatAmerica Leasing Receivables Funding LLC's Series 2011-1 and 2012-1. Standard & Poor's also affirmed its ratings on the Class A notes from Series 2011-1, 2012-1, and 2013-1 and the class B and C notes from Series 2013-1 ( see full pdf ).

Today's rating actions reflect each transaction's collateral performance to date, the improved performance of the small-ticket equipment sector, our views regarding future collateral performance, our macroeconomic outlook, the structure of the transaction, and the credit enhancement available to the notes. In addition, our analysis incorporated secondary credit factors, such as credit stability, payment priorities under various scenarios, and sector and issuer-specific evaluations. In our view, the creditworthiness of the notes is consistent with the raised and affirmed ratings.

Each transaction is exhibiting better-than-expected collateral performance ( see full pdf ). We lowered our original lifetime loss expectation for Series 2011-1 and 2012-1 ( see full pdf ) based on the lower-than-expected gross loss, net loss, and delinquency rates to date. Actual cumulative recovery rates remain consistent with the rates analyzed at issuance, and our analysis continues to assume some stressed recovery rates. Although Series 2013-1's losses to date are currently trending lower than our initial expectation, we are not revising our loss expectation at this time because the transaction has not sufficiently amortized to a level that we believe warrants a change.

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