Fitch Takes Various Actions on GE Equipment Transportation LLC Series 2011-1 and Series 2012-1

CHICAGO--()--Fitch Ratings takes various actions on GE Equipment Transportation L.L.C. series 2011-1 (GE ET 2011-1) and series 2012-1 (GE ET 20121) as follows:

GE ET 2011-1
--Class A-3 affirmed at 'AAAsf'; Outlook Stable;
--Class A-4 affirmed at 'AAAsf'; Outlook Stable;
--Class B upgraded to 'AAAsf' from 'AAsf'; Outlook to Stable from Positive;
--Class C upgraded to 'AAsf' from 'Asf'; Outlook Positive.

GE ET 2012-1
--Class A-2 affirmed at 'AAAsf'; Outlook Stable;
--Class A-3 affirmed at 'AAAsf'; Outlook Stable;
--Class A-4 affirmed at 'AAAsf'; Outlook Stable;
--Class B affirmed at 'AAsf'; Outlook to Positive from Stable;
--Class C affirmed at 'Asf'; Outlook to Positive from Stable.

KEY RATING DRIVERS

The upgrades of class B and C notes in GE ET 2011-1 reflect the improving loss coverage levels as credit enhancement continues to grow. The affirmations of class A notes reflect the high levels of enhancement available to the notes as well as strong performance of the transaction with only 12 basis points (bps) of net loss to date.

The affirmation of all outstanding classes in GE ET 2012-1 is reflective of credit enhancement levels that are consistent with the rating and strong collateral performance to date. As of February 2013 reporting period, cumulative net losses of 14 bps are below Fitch's initial expectations for the pool.

The Positive Outlook designation for the class C note in GE ET 2011-1 as well as the class B and C notes in GE ET 2012-1 reflects Fitch's expectation for loss coverage to continue improving as the transaction amortizes and credit enhancement levels continue to build. The Positive Outlook designation on the certain classes of notes reflects Fitch's view that the notes will continue to perform well and may warrant a review for potential positive rating action in the next 12 months.

RATING SENSITIVITY

Unanticipated increases in the frequency of defaults and loss severity could produce loss levels higher than the current projected base case loss proxies which would impact available loss coverage. Lower loss coverage could impact ratings and rating outlooks, depending on the extent of the decline in coverage. In Fitch's initial review of the transactions, the notes were found to have limited sensitivity to 1.5x and 2.5x higher of Fitch's base case loss expectations.

To date, the transactions have exhibited strong performance with losses well within Fitch's initial expectations with rising loss coverage and multiple levels. As such, continued strong performance for these transactions would most likely result in further positive rating actions. Conversely, a material deterioration in performance would have to occur within these asset pools to have potential negative impact on the outstanding ratings.

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:

--'Criteria for Rating U.S. Equipment Lease and Loan ABS' dated Dec. 28, 2012;
--'Global Structured Finance Rating Criteria' dated June 6, 2012.

Applicable Criteria and Related Research
Criteria for Rating U.S. Equipment Lease and Loan ABS
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=697250
Global Structured Finance Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=679923

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Contacts

Fitch Ratings
Primary Analyst:
Thomas Kaiser, CPA, +1-312-368-3338
Analyst
Fitch Ratings, Inc.
70 W Madison St.
Chicago, IL 60602
or
Committee Chairperson:
Bradley Sohl, +1-312-368-3127
Senior Director
or
Media Relations:
Sandro Scenga, +1-212-908-0278
sandro.scenga@fitchratings.com

Sharing

Contacts

Fitch Ratings
Primary Analyst:
Thomas Kaiser, CPA, +1-312-368-3338
Analyst
Fitch Ratings, Inc.
70 W Madison St.
Chicago, IL 60602
or
Committee Chairperson:
Bradley Sohl, +1-312-368-3127
Senior Director
or
Media Relations:
Sandro Scenga, +1-212-908-0278
sandro.scenga@fitchratings.com