Fitch Affirms One and Upgrades One Class of Marriott Vacation Club Owner Trust 2012-1
KEY RATING DRIVERS
The affirmation of the class A notes and upgrade of the class B notes reflects loss coverage levels and multiples consistent with 'AAsf' and 'Asf' ratings. Delinquency and loss performance has been within Fitch's initial expectations and loss coverage has increased since close. The Stable Outlook for both classes reflects Fitch's expectation that loss coverage levels will remain supportive of these ratings.
RATING SENSITIVITIES
Unanticipated increases in the frequency of defaults could produce loss levels higher than 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 exhibited performance within Fitch's initial expectations and loss coverage has increased since close. Due to the growth in credit enhancement levels and loss coverage afforded to the notes, a substantial increase in defaults 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 this rating action.
Fitch has taken the following ratings:
Marriott Vacation Club Owner Trust 2012-1
--Class A affirmed at 'AAsf'; Outlook Stable;
--Class B upgraded to 'Asf' from 'BBBsf'; Outlook Revised to Stable from Positive.
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