Fitch Affirms ARI Fleet Lease Trust 2013-A, 2014-A and 2015-A Notes
OREANDA-NEWS. Fitch Ratings has affirmed the following notes issued by ARI Fleet Lease Trust:
ARI Fleet Lease Trust 2013-A:
--Class A-3 note at 'AAAsf'; Outlook Stable.
ARI Fleet Lease Trust 2014-A:
--Class A-2 note at 'AAAsf'; Outlook Stable.
--Class A-3 note at 'AAAsf'; Outlook Stable.
ARI Fleet Lease Trust 2015-A:
--Class A-2 note at 'AAAsf'; Outlook Stable.
--Class A-3 note at 'AAAsf'; Outlook Stable
The ARI Fleet Lease Trust pools have collateral characteristics and risks similar to corporate collateralized debt obligations (CDOs) and auto lease securitizations. As such, Fitch used elements of the rating methodologies detailed in the criteria for both of these asset classes which include 'Global Rating Criteria for CLOs and Corporate CDOs' dated November 2015 and 'Criteria for Rating U.S. Auto Lease ABS' dated October 2015. For detail regarding the application of these criteria, please refer to the ARI Fleet Lease Trust 2013-A (US ABS), ARI Fleet Lease Trust 2014-A (US ABS), and ARI Fleet Lease Trust 2015-A (US ABS) presale reports available on 'www.fitchratings.com'.
KEY RATING DRIVERS
The affirmation of the notes reflects the stable performance of the underlying lease receivables as evidenced by low delinquency and loss rates. Additionally, credit enhancement has grown since close for all three transactions. Fitch will continue to monitor economic conditions and their impact on trust level performance, and will update the ratings accordingly.
RATING SENSITIVITIES
Unanticipated increases in the frequency of defaults and transaction fees, or decreases in recovery rates, could produce loss levels higher than the base case and could result in potential rating actions on the notes. In Fitch's initial review of the transactions, the notes were found to have limited sensitivity to changes in recovery rates associated with the high concentration of truck collateral in the pools. While the transactions initially displayed sensitivity to changes in obligor credit profiles, credit enhancement has grown, providing additional loss coverage. 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 these transactions can be found in 'ARI Fleet Lease Trust 2013-A - Appendix', 'ARI Fleet Lease Trust 2014-A - Appendix', 'ARI Fleet Lease Trust 2015-A - 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 Jan. 21, 2016.
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