Fitch Affirms 5 MMAF Equipment Finance LLC Series

NEW YORK--(BUSINESS WIRE)-- Fitch Ratings affirms five series of MassMassachusetts Asset Finance (MMAF) Equipment Finance LLC as follows:

Series 2011-A

Class A-4 at 'AAAsf'; Outlook Stable;

Class A-5 at 'AAAsf'; Outlook Stable;

Class B at 'AAAsf'; Outlook Stable;

Class C at 'AAsf'; Outlook Stable;

Class D at 'Asf'; Outlook Stable.

Series 2012-A

Class A-4 at 'AAAsf; Outlook Stable;

Class A-5 at 'AAAsf'; Outlook Stable.

Series 2013-A

Class A-3 at 'AAAsf'; Outlook Stable;

Class A-4 at 'AAAsf'; Outlook Stable;

Class A-5 at 'AAAsf'; Outlook Stable;

Series 2014-A

Class A-2 at 'AAAsf'; Outlook Stable;

Class A-3 at 'AAAsf'; Outlook Stable;

Class A-4 at 'AAAsf'; Outlook Stable;

Class A-5 at 'AAAsf'; Outlook Stable;

Class A-6 at 'AAAsf'; Outlook Stable.

Series 2015-A

Class A-2 at 'AAAsf'; Outlook Stable;

Class A-3 at 'AAAsf'; Outlook Stable;

Class A-4 at 'AAAsf'; Outlook Stable;

Class A-5 at 'AAAsf'; Outlook Stable.

KEY RATING DRIVERS

Fitch's analysis of MMAF incorporates the derivation of net loss expectations utilizing its proprietary Portfolio Credit Model (PCM) as the collateral pool contains high obligor concentrations and limited loss experience on both MMAF's managed portfolio and securitization portfolio. This approach is detailed in Fitch's criteria "Global Rating Criteria for Corporate CDOs," dated November, 2015. All other aspects of this review are consistent with "Criteria for Rating U.S. Equipment Lease and Loan ABS," dated December 2015.

The affirmation of the notes reflects credit support available which is consistent with the current ratings for all classes and has increased since last rating action. In addition, collateral performance has been strong to date as each trust has had limited delinquencies and zero losses. Fitch will continue to monitor these transactions and may take additional rating actions in the event of changes in performance and credit enhancement measures.

RATING SENSITIVITIES

Unanticipated increases in the frequency of defaults, 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 its initial review, Fitch evaluated the sensitivity of ratings assigned to unrated obligors to increased default levels. The transaction did show more sensitivity to higher default rates, which Fitch stressed by assuming all unrated obligors carry a 'CCC' Issuer Default Rating. As a result of increased credit enhancement, the transactions currently show less sensitivity to the same stress.

Additionally at close, Fitch's analysis found that the transaction displays relatively modest sensitivity to different recovery rates. Initial key rating drivers and rating sensitivities are further described in the new issue reports published on Fitch's website.

DUE DILIGENCE USAGE

No third party due diligence was provided or reviewed in relation to this rating action.

Additional information is available at www.fitchratings.com.

Applicable Criteria

Counterparty Criteria for Structured Finance and Covered Bonds (pub. 14 May 2014)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=744158

Criteria for Rating U.S. Equipment Lease and Loan ABS (pub. 03 Dec 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=874138

Criteria for Servicing Continuity Risk in Structured Finance (pub. 17 Dec 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=875586

Global Rating Criteria for CLOs and Corporate CDOs (pub. 12 Nov 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=873664

Global Structured Finance Rating Criteria (pub. 06 Jul 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=867952

Related Research

MMAF Equipment Finance LLC 2013-A - Appendix

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=715689

MMAF Equipment Finance LLC 2014-A - Appendix

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=749293

MMAF Equipment Finance LLC 2015-A -- Appendix

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=865231

MMAF Equipment Finance LLC Series 2012-A -- Appendix

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=681340

Additional Disclosures

Dodd-Frank Rating Information Disclosure Form

https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=1002751

Solicitation Status

https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=1002751

Endorsement Policy

https://www.fitchratings.com/jsp/creditdesk/PolicyRegulation.faces?context=2&detail=31

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

View source version on businesswire.com: http://www.businesswire.com/news/home/20160418006182/en/

Fitch Ratings
Surveillance Analyst
Thomas Kaiser, CPA, CFA
Associate Director
+1 312-368-2091
Fitch Ratings Inc.
70 West Madison
Chicago, IL 60602
or
Committee Chairperson
Du Trieu
Senior Director
+1 312-368-2068
or
Media Relations:
Sandro Scenga, New York, +1 212-908-0278
Email: [email protected]

Source: Fitch Ratings

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