Fitch Affirms MMAF Equipment Finance LLC Series 2013-A

CHICAGO--(BUSINESS WIRE)-- Fitch Ratings affirms MMAF Equipment Finance LLC Series 2013-A as follows:

--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 2013-A incorporates the derivation of net loss expectations utilizing its proprietary Portfolio Credit Model (PCM) as the collateral pool contains high obligor concentrations, and loss experience on MMAF's managed portfolio is currently well within initial Fitch expectations. This approach is detailed in Fitch's criteria 'Global Rating Criteria for Corporate CDOs,' dated July 25, 2014. All other aspects of this review are consistent with 'Criteria for Rating U.S. Equipment Lease and Loan ABS,' dated Dec. 23, 2014.

The affirmation of the notes reflects credit support available which is consistent with the current ratings for all classes. In addition, collateral performance has been strong to date, and each trust has had limited delinquencies and zero losses. Fitch will continue to monitor this transaction and may take 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 significantly 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 minimal sensitivities 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.

Fitch's analysis of the Representations and Warranties (R&W) of the transaction can be found in the report titled 'MMAF Equipment Finance LLC Series 2013-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 June 12, 2015.

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 Rating Criteria for Corporate CDOs (pub. 25 Jul 2014)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=753057

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

Additional Disclosures

Dodd-Frank Rating Information Disclosure Form

https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=987657

Solicitation Status

https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=987657

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/20150709005797/en/

Fitch Ratings
Surveillance Analyst
Thomas Kaiser, CPA
Associate Director
+1-312-368-2091
Fitch Ratings Inc.
70 West Madison
Chicago, IL 60602
or
Committee Chairperson
Tracy Wan
Senior Director
+1-212-908-9171
or
Media Relations:
Sandro Scenga, +1 212-908-0278
[email protected]

Source: Fitch Ratings

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