NEW YORK--(BUSINESS WIRE)--Fitch Ratings has affirmed two classes of notes issued by ARI Fleet Lease Trust 2013-A as follows:
--Class A-2 notes at 'AAAsf'; Outlook Stable;
--Class A-3 notes at 'AAAsf'; Outlook Stable.
The ARI Fleet Lease Trust 2013-A pool has collateral characteristics and risks similar to corporate collateralized debt obligations (CDOs) and auto lease securitizations. As such, Fitch used elements of the rating methodologies detailed in the criteria for both of these asset classes which include 'Global Rating Criteria for Corporate CDOs' dated Aug. 8, 2013 and 'Criteria for Rating U.S. Auto Lease ABS' dated April 30, 2013. For detail regarding the application of these criteria, please refer to the ARI Fleet Lease Trust 2012-B (US ABS) presale report available on 'www.fitchratings.com'.
KEY RATING DRIVERS
The affirmation of the notes reflect the stable performance of the underlying lease receivables as evidenced by low delinquency and loss rates, as well as increasing support provided by credit enhancement.
As compared to the transactions inception, the obligor and industry concentrations remain similar. The current pool maintains a strong concentration of investment grade obligors, consistent since close. Fitch's analysis of ARI Fleet Lease Trust 2013-A incorporates the derivation of net loss expectations utilizing its proprietary Portfolio Credit Model, the results of which continue to support the assigned ratings.
Fitch will continue to monitor economic conditions and their impact and the trust level performance variables and update the ratings accordingly.
RATING SENSITIVITY
Unanticipated increases in the frequency of defaults could produce default levels higher than the projected base case default proxy and impact available default coverage and multiples levels. Lower default coverage could impact ratings and Rating Outlooks, depending on the extent of the decline in coverage. In Fitch's initial review of the transaction, the notes were found to have limited sensitivity to changes in obligor credit profiles and recovery rates associated with the high concentration of truck collateral in the pool. A material deterioration in performance would have to occur within the asset pool to have potential negative impact on the outstanding ratings.
For further detail on the rating sensitivity analysis, please refer to Fitch's presale titled 'ARI Fleet Lease Trust 2013-A (US ABS)' available at 'www.fitchratings.com'.
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'.
The information used to assess these ratings was sourced from the issuer, periodic trustee reports, note valuation reports, and the public domain.
Applicable Criteria and Related Research:
--'Criteria for Rating U.S. Auto Lease ABS' (April 2013);
--'Criteria Rating Criteria for Corporate CDOs' (August 2013);
--'Global Structured Finance Rating Criteria' (May 2013);
--'Representations, Warranties, and Enforcement Mechanisms in Global Structured Finance Transactions' (April 17, 2012);
--'ARI Fleet Lease Trust 2013-A (US ABS)' (March 25, 2013);
--'ARI Fleet Lease Trust 2013-A - Appendix' (March 25, 2013).
Applicable Criteria and Related Research:
Criteria for Rating U.S. Auto Lease ABS
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=706699
Global Rating Criteria for Corporate CDOs
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=715492
Global Structured Finance Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=708661
Representations, Warranties, and Enforcement Mechanisms in Global Structured Finance Transactions -- Amended
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=676496
ARI Fleet Lease Trust 2013-A (US ABS)
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=704306
ARI Fleet Lease Trust 2013-A -- Appendix
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=704373
Additional Disclosure
Solicitation Status
http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=826125
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