Fitch Affirms 3 Classes of GE Equipment Small Ticket 2013-1
OREANDA-NEWS. Fitch Ratings affirms all three outstanding classes of GE Equipment Small Ticket 2013-1 as follows:
--Class A-4 at 'AAAsf': Outlook Stable
--Class B at 'AAAsf'; Outlook Stable
--Class C at 'AAAsf'; Outlook Stable.
KEY RATING DRIVERS
The affirmation of the remaining notes reflects loss coverage consistent with the current ratings. The transaction has continued to perform within Fitch's cumulative net loss (CNL) expectations to date. As of the April payment date, CNL for the 2013-1 transaction was 1.53%.
RATING SENSITIVITIES
Unanticipated increases in the frequency of defaults and loss severity could produce loss levels higher than the current projected base case loss expectations, subsequently impacting 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 presale report dated July 22, 2013, available on www.fitchratings.com.
To date, the transaction has exhibited strong performance with losses within Fitch's initial expectations with rising loss coverage and multiple levels. As a result, continued strong performance for the transaction would most likely result in stable ratings. Conversely, a material deterioration in performance would have to occur within the asset pools to have potential negative impact on the outstanding ratings.
Fitch's analysis of the Representations and Warranties (R&W) of this transaction can be found in 'GE Equipment Small Ticket, L.L.C Series 2013-1 - Appendix'. These R&W are compared to those of typical R&W for the asset class as detailed in the special report 'Representations, Warranties, and Enforcement Mechanisms in Global Structured Finance Transactions' dated March 2, 2016.
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