Fitch Affirms GE ET 2014-1 and Revises Outlooks

NEW YORK--(BUSINESS WIRE)-- Fitch Ratings affirms GE Equipment Transportation LLC (GE ET), series 2014-1 and revises Rating Outlooks as indicated

KEY RATING DRIVERS

The affirmation of all outstanding classes in GE ET 2014-1 is reflective of credit enhancement (CE) levels that are consistent with the ratings and strong collateral performance to date. As of the May 2015 payment date, only 3 basis points (bps) of cumulative net losses have been experienced, which is lower than Fitch's initial expectations for the pool.

The Positive Outlook for the class B and C notes reflects Fitch's expectation for loss coverage to continue improving as the transaction amortizes and CE levels continue to build. The Positive Outlook also reflects Fitch's view that the notes will continue to perform well and may warrant a review for potential positive rating action in the next 12-18 months.

RATING SENSITIVITIES

Unanticipated increases in the frequency of defaults and loss severity could produce loss levels higher than the current projected base case loss proxies which would impact available loss coverage. 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 transactions, the notes were found to have limited sensitivity to 1.5x and 2.5x higher of Fitch's base case loss expectations. Initial Key Rating Drivers and Rating Sensitivities are further described in the Presale Report dated June 9, 2014.

To date, the transaction have exhibited strong performance with losses inside of Fitch's initial expectations with rising loss coverage and multiple levels. As such, continued strong performance for this transaction would most likely result in further positive rating actions. Conversely, a material deterioration in performance would have to occur within these asset pools 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

For Fitch's initial Key Rating Drivers, Rating Sensitivities and the full detail analysis for this transaction, please see the New Issue report dated June 9, 2014. Fitch's analysis of the Representations and Warranties (R&W) of this transactions can be found in 'GE Equipment Transportation, L.L.C Series 2014-1 - 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 March 26, 2015.

Fitch has affirmed the following ratings:

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

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

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

--Class B at 'AAsf'; Outlook to Positive from Stable;

--Class C at 'Asf'; Outlook to Positive from Stable.

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. 23 Dec 2014)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=830328

Global Structured Finance Rating Criteria (pub. 31 Mar 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=864268

Additional Disclosures

Solicitation Status

https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=985870

Endorsement Policy

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

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View source version on businesswire.com: http://www.businesswire.com/news/home/20150604005955/en/

Fitch Ratings
Surveillance Analyst
Thomas Kaiser, CPA
Associate Director
+1-312-368-3338
Fitch Ratings, Inc.
70 W. Madison Street
Chicago, IL 60602
or
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Hylton Heard
Senor Director
+1-212-908-0214
or
Media Relations:
Sandro Scenga, +1 212-908-0278
[email protected]

Source: Fitch Ratings

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