Fitch Expects to Rate Mercedes Benz Master Owner Trust 2012-A; Presale Issued

NEW YORK--()--Fitch Ratings expects to assign the following ratings and Outlooks to the notes issued by Mercedes Benz Master Owner Trust (MBMOT) 2012-A:

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

Key Rating Drivers

Good Quality of Receivables: The receivables backing 2012-A are backed by 91% new vehicles and mainly MB and other original equipment manufacturer (OEM) new and used vehicles and are geographically diverse.

Asset Concentrations: Dealers are subject to specific concentration limits, mitigating the risk of individual dealer defaults and losses. Additionally, vehicle type concentration limits provide further diversification.

Strong Dealer Network: Based on a review of dealer financial metrics, including absorption rates, operating profits, and dealer net worth metrics, the financial health of the participating dealer network is viewed as historically strong, with the majority of dealers being profitable in 2012.

Strong Trust Performance: MBMOT has continued to experience positive trends in overall performance, including elevated monthly payment rates (MPRs) and asset yields, low agings and delinquencies, and no dealer defaults and trust losses.

Sufficient Credit Enhancement: Initial credit enhancement (CE) for the class A notes is 18.62%, consisting of 18.00% required overcollateralization (OC) amount and a 0.62% reserve account. Structural features include OC step up and early amortization triggers, which mitigate risks stemming from dealer/manufacturer defaults/bankruptcies.

Consistent Origination and Servicing: MBFS demonstrates adequate abilities as an originator, underwriter, and servicer, as evidenced by the historical delinquency and loss performance of MBMOT.

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

The presale report is available to all investors on Fitch's website at 'www.fitchratings.com'. For more information about Fitch's comprehensive subscription service FitchResearch, which includes all presale reports, surveillance, and credit reports on more than 20 asset classes, contact product sales at +1-212-908-0800 or at 'webmaster@fitchratings.com'.

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' (June 6, 2012);

--'Global Criteria for Rating Dealer Floorplan ABS' (Jan. 25, 2012);

--'Criteria for Interest Rate Stresses in Structured Finance Transactions' (March 20, 2012).

Applicable Criteria and Related Research: Mercedes-Benz Master Owner Trust 2012-A (US ABS)

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=695967

Global Structured Finance Rating Criteria

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

Global Rating Criteria for Dealer Floorplan ABS

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=666405

Criteria for Interest Rate Stresses in Structured Finance Transactions

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=673560

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Contacts

Fitch Ratings
Primary Analyst
Hylton Heard, +1-212-908-0214
Senior Director
Fitch, Inc.
One State Street Plaza
New York, NY 10004
or
Secondary Analyst
Juveria Mozzafar, +1-312-606-2335
Associate Director
or
Committee Chairperson
Bradley Sohl, +1-312-368-3127
Senior Director
or
Media Relations
Sandro Scenga, +1-212-908-0278 (New York)
sandro.scenga@fitchratings.com

Sharing

Contacts

Fitch Ratings
Primary Analyst
Hylton Heard, +1-212-908-0214
Senior Director
Fitch, Inc.
One State Street Plaza
New York, NY 10004
or
Secondary Analyst
Juveria Mozzafar, +1-312-606-2335
Associate Director
or
Committee Chairperson
Bradley Sohl, +1-312-368-3127
Senior Director
or
Media Relations
Sandro Scenga, +1-212-908-0278 (New York)
sandro.scenga@fitchratings.com