OREANDA-NEWS. Fitch Ratings has affirmed two and upgraded one class of the Harley-Davidson Motorcycle Trust 2013-1 transaction as follows:

--Class A-3 affirmed at 'AAAsf'; Outlook Stable;
--Class A-4 affirmed at 'AAAsf'; Outlook Stable;
--Class B upgraded to 'AAAsf' from 'AAsf'; Outlook revised to Stable from Positive.

KEY RATING DRIVERS

The affirmations of the class A-3 and A-4 notes, and upgrade of the class B notes to 'AAAsf', reflect loss coverage levels consistent with the current ratings. While delinquency and loss performance is slightly higher in comparison to prior recent transactions from Harley-Davidson Financial Services (HDFS), the pool is still performing within Fitch's initial expectations and credit enhancement continues to grow.

The ratings also reflect the quality of Harley-Davidson Financial Services' retail motorcycle loan originations, the strength of its servicing capabilities, and the sound financial and legal structure of the transaction.

RATING SENSITIVITIES

Unanticipated increases in the frequency of defaults and loss severity could produce loss levels higher than the current projected base case loss proxy and impact available loss coverage and multiple levels for the transaction. Lower loss coverage could impact ratings and 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 a 1.5x increase of Fitch's base case loss expectation and moderate sensitivity to a 2.5x increase. To date, the transaction has performed within Fitch's initial expectations. In addition, increasing credit enhancement levels have resulted in rising loss coverage and multiples. As such, a strong deterioration in performance would have to occur within the asset pool to have potential negative impact on the outstanding ratings.

Fitch's analysis of the Representation and Warranties (R&W) of 2013-1 can be found in 'Harley-Davidson Motorcycle Trust 2013-1 -- Appendix'. The 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 the Global Structured Finance Transactions' dated March 26, 2015.