Fitch Affirms NuCO2 Funding LLC Series 2008-1

CHICAGO--(BUSINESS WIRE)--Fitch Ratings affirms NuCO2 Funding LLC, series 2008-1 notes as follows:

--$75,000,000 class B at 'BB', Outlook Stable.

Fitch's affirmation reflects trust performance within initial rating expectations. Since issuance, NuCO2 has strengthened its industry position and improved trust interest coverage and leverage.

As of the August 2012 payment date, customer locations have increased by 33.26% to 154,712. Revenues on a trailing 12-month basis have increased 54.4% to $208.1 million when compared to Dec. 31, 2007. NuCO2's three-month and 12-month interest coverage ratios on the senior debt were 3.56 times (x) and 3.41x, respectively. These coverage ratios compare favorably to the original three-month interest coverage ratio of 2.59x when first reported in June 2008.

Fitch expects trust performance to remain stable, as additional revenues attributable to NuCO2's ongoing acquisition strategy and organic growth will be available to service the additional debt and maintain coverage and leverage metrics. However, Fitch expects future growth to be somewhat constrained due to the limited acquisition opportunities available, as NuCO2 has already acquired the majority of their largest competitors.

Fitch's Stable Outlook reflects the trust's expected continued performance despite the challenging economic and restaurant environment, because of the unique nature of its product and business model.

Over the remaining term of the securitization, Fitch will continually monitor NuCO2's performance. Any material change in Fitch's assessment or assumptions could affect the ratings of the trust.

The notes are backed by cash flows generated by substantially all of NuCO2's business activities, which are primarily the leasing of bulk carbon dioxide systems and the distribution of carbon dioxide (CO2) to quick service restaurants (QSRs) and other retailers of fountain beverages in the United States.

Additional information is available at 'www.fitchratings.com'. The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has been compensated for the provision of the ratings.

Applicable Criteria and Related Research:

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

--New Issue Report 'NuCO2 Funding LLC, Series 2008-1' dated April 24, 2008.

Applicable Criteria and Related Research:

Global Structured Finance Rating Criteria

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

NuCO2 Funding LLC, Series 2008-1

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=383754

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