Fitch Takes Various Actions on Distribution Financial Services RV/Marine Trust 2001-1

NEW YORK--(BUSINESS WIRE)--On Dec. 23, 2009, Fitch Ratings downgraded two classes and affirmed one class of Distribution Financial Services RV/Marine Trust 2001-1 as part of its ongoing surveillance process.

The rating actions reflect the weaker than expected performance of the transaction above Fitch's original base case expectations for both delinquencies and cumulative net losses (CNL) and the under-collateralization of the notes. Fitch placed the Class D notes on Rating Watch Negative on Dec. 23, 2008.

Current loss performance is considerably worse than originally expected, and the future, projected performance for the transaction has been revised upwards. Total delinquencies are currently 5.89% and CNL is 4.37%.

Fitch's analysis incorporated anticipated losses on defaulted collateral given Fitch's recovery expectations. Fitch's recovery expectations are based on collateral-specific cash flow expectations. The resulting anticipated collateral losses were then applied to the transaction structure, enabling Fitch to asses the impact of the losses on the securities and available credit enhancement. Fitch's Recovery Ratings (RR) are designed to estimate recoveries on a forward-looking basis while taking into account the time value of money.

Fitch will continue to closely monitor the performance of the transaction, and will take further rating actions as deemed necessary.

Fitch has taken the following rating actions, which include assigning Outlooks:

--Class B notes affirmed at 'AA'; Outlook Stable;

--Class C notes downgraded to 'BB' from 'A'; Outlook Negative;

--Class D notes downgraded to 'C/RR4' from 'B-'.

Applicable Criteria available on Fitch's web site at 'www.fitchratings.com': 'Rating U.S. Auto-Loan Backed Securitizations: A Tune-Up,' dated May 30, 2007, and 'Global Structured Finance Rating Criteria', dated Sept. 30, 2009.

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

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