Fitch Rates GE Dealer Floorplan Master Note Trust, Series 2013-1

CHICAGO--(BUSINESS WIRE)--Fitch rates GE Dealer Floorplan Master Note Trust, series 2013-1 as follows:

--$500,000,000 class A notes 'AAAsf'; Outlook Stable;

--$10,527,000 class B notes 'Asf'; Outlook Stable;

--$15,790,000 class C notes 'BBBsf'; Outlook Stable.

The issuance of the 2013-1 series is not expected to adversely impact the performance of the outstanding series within the trust, which includes 2011-1, 2012-1, 2012-2, 2012-3, 2012-4 and any private series rated by Fitch.

KEY RATING DRIVERS

Diversified Trust: The trust currently comprises receivables associated with approximately 2,000 manufacturers, 24,000 dealers, and 13 separate product lines. GE DFMNT is classified as a category A trust under Fitch's criteria.

Strong Performance: GE DFMNT has experienced minimal net losses going back to 2004. The monthly trust default rate was 0.13% in January 2013. Monthly payment rates (MPR), agings, and delinquencies are currently stable, having steadily improved in the past couple years.

Improved Industry, Manufacturer, and Dealer Health: Although certain industries/product lines have been slow to recover and some remain weak with volatile monthly losses, the overall strength of the manufacturers and dealers in the trust has stabilized. Trust performance metrics (MPR and losses) are currently stable at historical levels.

Sufficient Credit Enhancement: Initial available credit enhancement for the class A notes is 11.90%, consisting of 9.52% subordination, and a 2.38% reserve (based on the initial collateral balance). The master trust contains a dynamic seasonal early amortization three-month average MPR trigger and a default rate trigger set at 5% (on a three-month average).

Consistent Origination and Servicing: GE Commercial Distribution Finance Corporation (GE CDF) has demonstrated adequate abilities as an originator, underwriter, and servicer, as evidenced by the historical delinquency and loss performance of GE DFMNT.

Legal Structure Integrity: The legal structure of the transaction provides that a bankruptcy of General Electric Capital Corporation (GECC) would not impair the timeliness of payments on the securities.

RATING SENSITIVITY

To conduct rating sensitivity for the issued notes, under a category A DFP platform, Fitch assumes portfolio default levels at 5%, 15%, and 25% and under two recovery level scenarios of 50% and 30%. Fitch modeled 2013-1 with the assumption that the above defaults have occurred, reflecting asset performance in a stressed environment. Remaining expected loss levels were compared with the stressed loss assumption grid commensurate with various rating levels.

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Individual Representations, Warranties, and Enforcement Mechanisms reports are available for all structured finance transactions initially rated on or after Sept. 26, 2011 at 'www.fitchratings.com'.

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

Applicable Criteria and Related Research:

--'Global Rating Criteria for Dealer Floorplan ABS' dated Jan. 23, 2013;

--'Global Structured Finance Rating Criteria' dated June 6, 2012.

Applicable Criteria and Related Research

Global Rating Criteria for Dealer Floorplan ABS

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=698609

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=679923

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=790105

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