Fitch Affirms BMW Vehicle Lease Trust 2014-1
--Class A-2 notes at 'AAAsf'; Outlook Stable;
--Class A-3 notes at 'AAAsf'; Outlook Stable;
--Class A-4 notes at 'AAAsf'; Outlook Stable.
KEY RATING DRIVERS
The affirmations reflect loss coverage levels consistent with the current ratings. Credit and residual performance has been within Fitch's expectations to date. The Stable Outlook reflects Fitch's expectation for loss coverage and credit enhancement to continue to improve as the transactions amortize.
RATING SENSITIVITIES
Unanticipated increases in the frequency of defaults or deterioration in vehicle values could produce loss levels higher than the current expectations and impact available loss coverage. Lower loss coverage could impact ratings and Rating Outlooks, depending on the extent of the decline in coverage.
To date, the transaction has exhibited strong credit and residual performance, inside Fitch's initial expectations with rising loss coverage. Due to the growing credit enhancement levels and increased loss coverage afforded to the notes, a substantial deterioration in used vehicle values would have to occur to have a negative impact on the updated ratings.
Fitch's stress and rating sensitivity analyses are discussed in the presale reports titled 'BMW Vehicle Lease Trust 2014-1 (US ABS)', dated April 7, 2014 available on Fitch's web site.
Fitch's analysis of the Representations and Warranties (R&W) of the transaction can be found in ' BMW Vehicle Lease Trust 2014-1 -- 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 25, 2015.
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