Fitch Affirms Mercedes-Benz Auto Lease Trust 2013-B; Outlooks Remain Stable
KEY RATING DRIVERS
The ratings affirmations for the Class A notes reflect loss coverage levels consistent with the current ratings. Hard credit enhancement (CE) has grown since close and residual performance has been within Fitch's initial expectation. The Stable Outlooks reflect Fitch's expectation that the notes will remain sufficiently enhanced to cover stressed credit and residual loss levels consistent with an 'AAAsf' rating.
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 exhibit credit and residual performance within 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.
DUE DILIGENCE USAGE
No third party due diligence was provided or reviewed in relation to these rating actions.
Fitch has affirmed the following ratings:
--Class A-3 notes at 'AAAsf; Outlook Stable
--Class A-4 notes at 'AAAsf; Outlook Stable
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