Fitch Affirms and Upgrades CNH Equipment Trusts 2013-B & 2013-D Notes

CHICAGO--(BUSINESS WIRE)-- Fitch Ratings has taken various rating actions on CNH Equipment Trusts 2013-B and 2013-D as follows:

CNH 2013-B

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

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

--Class B upgraded to 'AAAsf' from 'AAsf'; Outlook revised to Stable from Positive.

CNH 2013-D

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

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

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

--Class B upgraded to 'AAAsf' from 'AAsf'; Outlook revised to Stable from Positive.

KEY RATING DRIVERS

The affirmation of the class A notes in both transactions reflects loss coverage levels consistent with the current ratings. The upgrades to the class B notes is largely attributable to growing hard credit enhancement (CE) levels since close, and strong loss performance to date. Both transactions are forecasting below Fitch's initial base case loss proxies. The Outlook Stable designation for all notes reflects Fitch's expectation for loss coverage and credit enhancement to continue to improve as the transactions amortize.

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 reports dated August 26, 2013 for 2013-B and November 12, 2013 for 2013-D.

To date, the transactions have exhibited strong performance with losses inside Fitch's initial expectations with rising loss coverage and multiple levels. As such, continued strong performance for these transactions would most likely result in further stable ratings. Conversely, a material deterioration in performance would have to occur within the asset pools to have potential negative impact on the outstanding ratings.

Fitch's analysis of the Representations and Warranties (R&W) for both transactions can be found in 'CNH Equipment Trusts 2013-B - Appendix' 'CNH Equipment Trusts 2013-D - 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.

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research:

--'Criteria for Rating U.S. Equipment Lease and Loan ABS' (Dec. 23, 2014);

--'Global Structured Finance Rating Criteria' (March 26, 2015);

--'CNH Equipment Trusts 2013-B' (Aug. 26, 2013);

--'CNH Equipment Trusts 2013-B - Appendix' (Aug. 26, 2013);

--'CNH Equipment Trusts 2013-D' (Nov. 12, 2013);

--'CNH Equipment Trusts 2013-D - Appendix' (Nov. 12, 2013).

Applicable Criteria and Related Research:

Criteria for Rating U.S. Equipment Lease and Loan ABS

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

Global Structured Finance Rating Criteria

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

CNH Equipment Trust 2013-B (US ABS)

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=708938

CNH Equipment Trust 2013-B -- Appendix

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=708962

CNH Equipment Trust 2013-D (US ABS)

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=723077

CNH Equipment Trust 2013-D - Appendix

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=723184

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=985121

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/20150521006199/en/

Fitch Ratings
Primary Analyst
Andrew Tinari, +1-312-368-3127
Analyst
Fitch Ratings, Inc.
70 W. Madison Street
Chicago, IL 60602
or
Secondary Analyst
Du Trieu, +1-312-368-2091
Senior Director
or
Committee Chairperson
Kevin Corrigan, +1-212-908-0500
Senior Director
or
Media Relations
Sandro Scenga, +1-212-908-0278
[email protected]

Source: Fitch Ratings

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