Fitch Upgrades One and Affirms One Class of MVW Owner Trust 2013-1 Notes
KEY RATING DRIVERS
The upgrade of the class A notes to 'AAsf' from 'Asf' reflects strong performance, credit enhancement growth since closing, and available loss coverage. The affirmation of the class B notes reflects loss coverage levels consistent with the current rating. The Outlook revision reflects the potential for a positive rating action in the next one to two years.
RATING SENSITIVITIES
Unanticipated increases in the frequency of defaults 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 performance within Fitch's initial expectations with rising loss coverage. Due to the growth in credit enhancement levels and increased loss coverage afforded to the notes, a substantial increase in defaults would have to occur to have a negative impact on the updated ratings.
DUE DILIGENCE USAGE
No third party due diligence was provided or reviewed in relation to this rating action.
For Fitch's initial Key Rating Drivers, Rating Sensitivities and the full detail analysis for this transaction, please see the New Issue report dated July 29, 2013. Fitch's analysis of the Representations and Warranties (R&W) of this transaction can be found in 'MVW Owner Trust 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 26, 2015.
Fitch has taken the following actions:
MVW Owner Trust 2013-1
--Class A upgraded to 'AAsf' from 'Asf'; Outlook revised to Stable from Positive;
--Class B affirmed at 'BBBsf'; Outlook revised to Positive from Stabl
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