Fitch Affirms and Upgrades GE EMT 2010-1

CHICAGO--()--Fitch Ratings has taken the following rating actions on GE Equipment Midticket LLC (GE EMT), series 2010-1 notes:

--Class B affirmed at 'AAAsf'; Outlook Stable;

--Class C upgraded to 'AAAsf' from 'AAsf'; Outlook to Stable from Positive.

KEY RATING DRIVERS

The upgrade of class C reflects increasing loss coverage and performance. As of the February 2014 reporting period, cumulative net losses totaled 8 bps. The affirmations of the class B notes reflect loss coverage and credit enhancement levels consistent with an 'AAAsf' rating. The Stable Outlook for both classes reflects Fitch's expectation of continued strong performance.

RATING SENSITIVITIES

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 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 presale published Sept. 20, 2010.

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 stable performance for this transaction will result in stable to positive rating actions. Additionally, the significant overcollateralization in the transaction will provide sufficient coverage preventing negative rating actions in a rapidly deteriorating economic environment.

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;

--'GE Equipment Mid-Ticket, L.L.C Series 2010-1' dated Sept. 10, 2010.

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

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=708661

GE Equipment Midticket LLC, Series 2010-1

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=561546

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=822643

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Contacts

Fitch Ratings
Primary Analyst
Thomas Kaiser, CPA
Associate Director
+1-312-368-3338
Fitch Ratings, Inc.
70 W. Madison Street
Chicago, IL 60602
or
Secondary Analyst
Du Trieu
Senior Director
+1-312-368-2091
or
Committee Chairperson
Hylton Heard
Senior Director
+1-212-908-0214
or
Media Relations:
Sandro Scenga, +1-212-908-0278 (New York)
sandro.scenga@fitchratings.com

Sharing

Contacts

Fitch Ratings
Primary Analyst
Thomas Kaiser, CPA
Associate Director
+1-312-368-3338
Fitch Ratings, Inc.
70 W. Madison Street
Chicago, IL 60602
or
Secondary Analyst
Du Trieu
Senior Director
+1-312-368-2091
or
Committee Chairperson
Hylton Heard
Senior Director
+1-212-908-0214
or
Media Relations:
Sandro Scenga, +1-212-908-0278 (New York)
sandro.scenga@fitchratings.com