Fitch Affirms 3 Classes of Harley-Davidson Motorcycle Trust 2013-1
OREANDA-NEWS. Fitch Ratings has affirmed three classes of the Harley-Davidson Motorcycle Trust 2013-1. A full list of rating actions follows at the end of this press release.
KEY RATING DRIVERS
The rating affirmations are based on available credit enhancement and loss performance. The collateral pool continues to perform within Fitch's expectations. Based on the current structure and credit enhancement, the securities are able to withstand stress scenarios consistent with their current ratings and make full payments to investors in accordance with the terms of the documents.
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 and impact available loss coverage and multiple levels for the transaction. 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 transaction, the notes were found to have limited sensitivity to a 1.5x increase of Fitch's base case loss expectation and moderate sensitivity to a 2.5x increase. To date, the transaction has performed within Fitch's initial expectations. In addition, increasing credit enhancement levels have resulted in rising loss coverage and multiples. As such, a strong 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 has affirmed the following ratings:
--Class A-3 notes at 'AAAsf'; Outlook Stable;
--Class A-4 notes at 'AAAsf'; Outlook Stable;
--Class B notes at 'AAAsf'; Outlook Stable.
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