by Fitch Ratings on Thursday, November 21, 2013
Fitch Ratings-Chicago-21 November 2013: Fitch Ratings has taken the following actions on GreatAmerica Leasing Receivable Funding, LLC series 2011-1 (GALR 2011-1):
--Class A-4 affirmed at 'AAAsf'; Outlook Stable;
--Class B affirmed at 'AAAsf'; Outlook Stable;
--Class C upgraded to 'AAAsf' from 'AAsf'; Outlook revised to Stable from Positive.
KEY RATING DRIVERS
The upgrade of class C and the affirmation of classes A and B at 'AAAsf' reflect the credit enhancement (CE) and net loss coverage levels commensurate with the rating. Additionally, the transaction has performed well to date with losses within initial expectations. The Stable Outlook for all classes reflects the expected performance and growing CE. Fitch will continue to monitor this transaction and will take additional rating actions in response to changes in performance and CE measures as appropriate.
Unanticipated increases in the frequency of defaults and loss severity could produce loss levels higher than the current projected base case loss proxy which would impact available loss coverage. Lower loss coverage could impact ratings and rating outlooks, depending on the extent of the decline in coverage. In Fitch's initial review of the transaction, the notes were found to have limited sensitivity to 1.5x and 2.5x higher of Fitch's base case loss expectations. Initial key rating drivers and rating sensitivities are further described in the new issue report published in February 2011.
To date, the transaction has exhibited strong performance with losses within Fitch's initial expectations, resulting in rising CE and loss coverage levels. As such, continued strong performance for this transaction would result in stable rating actions. Conversely, a material deterioration in performance would have to occur within the asset pool to have potential negative impact on the outstanding ratings.
Thomas Kaiser, CPA
Fitch Ratings, Inc.
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Chicago, IL 60602
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