Fitch Affirms ARI Fleet Lease Trust 2013-A, 2014-A and 2015-A Notes

NEW YORK--(BUSINESS WIRE)-- 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.

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. Auto Lease ABS (pub. 19 Oct 2015)https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=872539

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

ARI Fleet Lease Trust 2013-A -- Appendixhttps://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=704373

ARI Fleet Lease Trust 2014-A -- Appendixhttps://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=743177

ARI Fleet Lease Trust 2015-A -- Appendixhttps://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=862923

Additional Disclosures

Dodd-Frank Rating Information Disclosure Formhttps://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=1000106

Solicitation Statushttps://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=1000106

Endorsement Policyhttps://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/20160226006087/en/

Fitch Ratings, Inc.
Surveillance Analyst
Eric Orenstein, +1-646-582-4816
Analyst
33 Whitehall Street
New York, NY 10004
or
Committee Chairperson
Du Trieu, +1-312-368-2091
Senior Director
or
Media Relations, New York
Sandro Scenga, +1-212-908-0278
[email protected]

Source: Fitch Ratings

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