Fitch Affirms Huntington Technology Funding Trust 2012-A
--Class A-3 affirmed at 'AAAsf; Outlook Stable;
--Class B affirmed at 'AAsf'; Outlook Positive
--Class C affirmed at 'BBBsf'; Outlook Stable.
KEY RATING DRIVERS
Fitch affirmed Huntington Technology Funding Trust 2012-A formerly known as Macquarie Equipment Funding Trust 2012-A. The affirmation of the notes reflects the credit enhancement (CE) levels available to each class which provides for net loss coverage levels commensurate with the ratings.
Given strong performance and increasing CE levels, the Outlook remains Positive for class B; however, the potential increase in obligor concentration as the portfolio amortizes could limit positive rating actions. The Stable Outlook on C reflects the expected stable CE for the notes.
RATING SENSITIVITIES
Unanticipated increases in the frequency of defaults, or decreases in recovery rates, could produce loss levels higher initial expectation and could result in potential rating actions on the notes. In its initial review, Fitch evaluated the sensitivity of ratings assigned to unrated obligors in order to increased default levels. The transaction did show sensitivity to higher default rates, which Fitch stressed by assuming all unrated obligors carry a 'CCC' Issuer Default Rating. As a result of increased CE, the transaction currently shows minimal sensitivity to the same stress. However, a material increase in obligor concentrations may impact future sensitivities for this transaction.
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