Fitch Affirms Outstanding Classes for 3 John Deere Owner Trust Transactions; Outlook Stable
KEY RATING DRIVERS
The rating affirmations for all three transactions are based on available credit enhancement (CE) and loss performance. The collateral pools for 2013, 2014 and 2015 continue to perform within Fitch's expectations. Based on the current structures and CE, the securities are able to withstand stress scenarios consistent with the assigned ratings and continue to make full scheduled payments to investors.
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, which would impact available loss coverage. Lower loss coverage could impact ratings and Rating Outlooks, depending on the extent of the decline in coverage. In Fitch's initial review of the transactions, the notes were found to have limited sensitivity to 1.5x and 2.5x, higher of Fitch's base case loss expectation.
To date, the transactions have exhibited strong performance with losses within Fitch's initial expectations with rising loss coverage and multiple levels. As such, continued strong performance for the transactions would most likely result in stable ratings. Conversely, a material deterioration in performance would have to occur within the asset pool to have potential negative impact on the outstanding ratings.
DUE DILIGENCE USAGE
No third party due diligence was provided or reviewed in relation to this rating action.}
Fitch's analysis of the Representations and Warranties (R&W) of JDOT 2013,2014 and 2015 can be found in 'John Deere Owner Trust 2013 - Appendix', 'John Deere Owner Trust 2014 - Appendix and 'John Deere Owner Trust 2015 - 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 June 12, 2015.
Fitch has affirmed the following:
John Deere Owner Trusts
2013:
--Class A-3 at 'AAAsf'; Stable Outlook;
--Class A-4 at 'AAAsf'; Stable Outlook.
2014:
--Class A-3 at 'AAAsf'; Stable Outlook;
--Class A-4 affirmed at 'AAAsf'; Stable Outlook.
2015:
--Class A-2a at 'AAAsf'; Stable Outlook;
--Class A-2b at 'AAAsf'; Stable Outlook;
--Class A-3 at 'AAAsf'; Stable Outlook;
--Class A-4 at 'AAAsf'; Stable Outlook.
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