Fitch Rates GMF Floorplan Owner Revolving Trust, Series 2015-1

NEW YORK--(BUSINESS WIRE)-- Fitch Ratings assigns the following ratings and Outlooks to the GMF Floorplan Owner Revolving Trust, series 2015-1:

--$498,545,000 class A-1 notes 'AAAsf'; Outlook Stable;

--$125,000,000 class A-2 notes 'AAAsf'; Outlook Stable;

--$41,425,000 class B notes 'AAsf'; Outlook Stable;

--$50,146,000 class C notes 'Asf'; Outlook Stable;

--$34,884,000 class D notes 'BBBsf'; Outlook Stable.

KEY RATING DRIVERS

Quality of Wholesale Receivables: The receivables are primarily new vehicles (85.5% as of March 31, 2015 - the trust statistical date [SD]) with strong aging distribution.

Adequate Dealer Diversification: The trust is comprised of 446 dealer accounts, with the top 25 dealers in the trust totaling significantly less than 50% of the trust balance as of the SD. Dealer concentration limits are in place, mitigating risks of individual dealer defaults and losses. Concentration limits are also in place to limit exposure to specific vehicle types and segments.

Strength of Dealer Network: The financial health of GMF's dealer network is evidenced by the current stable dealer financial metrics, including healthy dealer revenues, with the majority of dealers recording solid profits since inception.

Stable Trust Performance: Since inception in February 2013, GMF's trust portfolio has experienced consistent performance trends, including stable MPRs, low agings, stable yields, and zero dealer defaults or losses.

Sufficient Credit Enhancement: Initial credit enhancement (CE) for the class A notes is 29.36% (of the initial collateral balance). Structural features such as early amortization triggers mitigate risks of manufacturer and dealer defaults and/or bankruptcies.

Consistent Origination and Servicing: GMF demonstrates adequate abilities as originator, underwriter and servicer, as evidenced by their total portfolio and GFORT performance metrics.

Legal Analysis: The legal structure of the transaction provides that a bankruptcy of GMF would not impair the timeliness of payments on the securities.

RATING SENSITIVITIES

To conduct rating sensitivity for the issued notes, under a category B Dealer Floorplan platform, Fitch assumes portfolio default levels at 10%, 25%, and 40%, and under two recovery-level scenarios of 50% and 30%. Fitch modeled these series with the assumption that the above defaults have occurred and recoveries stressed accordingly, reflecting asset performance in a stressed environment. Remaining expected loss levels were compared with the stressed loss assumption grid commensurate with various rating levels.

Fitch's presale report and analysis of the Representation and Warranties (R&W) of these transactions can be found in 'GM Financial Floorplan Owner Revolving Trust, Series 2015-1--Presale' and 'GM Financial Floorplan Owner Revolving Trust, Series 2015-1 - Appendix'. The R&W are compared to those of typical R&W for the asset class as detailed in Fitch's March 2015 special report, 'Representations, Warranties, and Enforcement Mechanisms in the Global Structured Finance Transactions'.

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

Applicable Criteria and Related Research:

--'Global Rating Criteria for Dealer Floorplan ABS' (January 2015);

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

--'Representations, Warranties and Enforcement Mechanisms in Global Structured Finance Transaction' (March 2015);

--'GM Financial Floorplan Owner Revolving Trust, Series 2015-1 - Presale' (May 2015);

--'GM Financial Floorplan Owner Revolving Trust, Series 2015-1 -- Appendix' (May 2015).

Applicable Criteria and Related Research:

Global Rating Criteria for Dealer Floorplan ABS

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=833468

Global Structured Finance Rating Criteria

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

Representations, Warranties and Enforcement Mechanisms in Global Structured Finance Transactions

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=863817

GMF Floorplan Owner Revolving Trust, Series 2015-1 (US ABS)

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=865877

GMF Floorplan Revolving Owner Trust, Series 2015-1 -- Appendix

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=865880

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=985054

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/20150520006511/en/

Fitch Ratings
Primary Analyst
Hylton Heard
Senior Director
+1 212-908-0214
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Secondary Analyst
Du Trieu
Senior Director
+1 312-368-2091
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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