Fitch Affirms John Deere Owner Trust 2012

NEW YORK--()--Fitch Ratings has affirmed the John Deere Owner Trust (JDOT) 2012 as follows:

-- Class A-3 affirmed at 'AAAsf'; Outlook Stable;
-- Class A-4 affirmed at 'AAAsf'; Outlook Stable.

KEY RATING DRIVERS
The affirmations of the class A notes reflect loss coverage levels consistent with the current ratings. As of the January 2014 reporting period, cumulative net losses totaled nine basis points, and the class is forecasting below Fitch's initial base case proxy. The Stable Outlook for all classes reflects Fitch's expectation for loss coverage and credit enhancement to continue to improve as the transaction amortizes.

RATING SENSITIVITY

Unanticipated increases in the frequency of defaults and loss severity could produce loss levels higher than the current projected base case loss proxy 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 transaction, the notes were found to have limited sensitivity to 1.5x and 2.5x higher of Fitch's base case loss expectations. Initial key rating drivers and rating sensitivities are further described in the new issue reports published on Feb. 21, 2012.

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

Fitch's analysis of the Representations and Warranties (R&W) of this transaction can be found in 'John Deere Owner Trust 2012 - Appendix'. These R&W are compared to those of typical R&W for the asset class as detailed in the special report 'Representations, Warranties, and Enforcement Mechanisms in Global Structured Finance Transactions' dated April 17, 2012.

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

Applicable Criteria and Related Research:
--'Criteria for Rating U.S. Equipment Lease and Loan ABS' dated Dec 19, 2013;
--'Global Structured Finance Rating Criteria' dated May 24, 2013;
--'Representations, Warranties, and Enforcement Mechanisms in Global Structured Finance Transactions' dated Apr 17, 2012;
--'John Deere Owner Trust 2012' dated Feb 21, 2012;
--'John Deere Owner Trust 2012 - Appendix' dated Feb 21, 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=726362
John Deere Owner Trust 2012 (U.S. ABS)
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=672090
John Deere Owner Trust 2012 - Appendix
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=672190
Representations, Warranties, and Enforcement Mechanisms in Global Structured Finance Transactions -- Amended
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=676496
Global Structured Finance Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=708661

Additional Disclosure
Solicitation Status
http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=818484
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Contacts

Fitch Ratings
Primary Analyst
Thomas Kaiser, CPA, +1-312-368-3338
Analyst
Fitch Ratings, Inc.
70 W. Madison Street
Chicago, IL 60602
or
Secondary Analyst
Du Trieu, +1-312-368-2091
Senior Director
or
Committee Chairperson
Bradley Sohl, +1-212-908-0792
Senior Director
or
Media Relations
Sandro Scenga, New York, +1 212-908-0278
sandro.scenga@fitchratings.com

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Contacts

Fitch Ratings
Primary Analyst
Thomas Kaiser, CPA, +1-312-368-3338
Analyst
Fitch Ratings, Inc.
70 W. Madison Street
Chicago, IL 60602
or
Secondary Analyst
Du Trieu, +1-312-368-2091
Senior Director
or
Committee Chairperson
Bradley Sohl, +1-212-908-0792
Senior Director
or
Media Relations
Sandro Scenga, New York, +1 212-908-0278
sandro.scenga@fitchratings.com