Fitch Affirms GE Equipment Transportation LLC Series 2013-1; Outlooks Revised

NEW YORK--()--Fitch Ratings has affirmed various classes and revised Rating Outlooks as indicated on GE Equipment Transportation L.L.C. series 2013-1 (GE ET 2013-1) as follows:

--Class A-2 at 'AAAsf'; Outlook Stable;

--Class A-3 at 'AAAsf'; Outlook Stable;

--Class A-4 at 'AAAsf'; Outlook Stable;

--Class B at 'AAsf'; Outlook to Positive from Stable;

--Class C at 'Asf'; Outlook to Positive from Stable;

KEY RATING DRIVERS

The affirmation of all outstanding classes in GE ET 2013-1 is reflective of credit enhancement levels that are consistent with the ratings and strong collateral performance to date. As of February 2014 reporting period, only 8 bps of cumulative net losses have been experienced, which is lower than Fitch's initial expectations for the pool.

The Positive Outlook designation for the class B and C notes reflects Fitch's expectation for loss coverage to continue improving as the transaction amortizes and credit enhancement levels continue to build. The Positive Outlook 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 12-18 months.

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 transactions, 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 Report dated March 11, 2013.

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.

Fitch's analysis of the Representations and Warranties (R&W) of these transactions can be found in the reports titled 'GE Equipment Transportation, L.L.C Series 2013-1 - 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 December 19, 2013;

--'Global Structured Finance Rating Criteria' dated May 24, 2013

--'Representations, Warranties, and Enforcement Mechanisms in Global Structured Finance Transactions' dated April 17, 2012.

--'GE Equipment Transportation, L.L.C Series 2013-1' dated March 11, 2013

--'GE Equipment Transportation, L.L.C Series 2013-1 - Appendix' dated March 11, 2013

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

Representations, Warranties, and Enforcement Mechanisms in Global Structured Finance Transactions -- Amended

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=676496

GE Equipment Transportation LLC, Series 2013-1 (US ABS)

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=703532

GE Equipment Transportation LLC, Series 2013-1 -- Appendix

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=703648

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=822644

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Contacts

Fitch Ratings
Primary Analyst
Thomas Kaiser, CPA
Associate Director
+1-312-368-3338
Fitch Ratings, Inc.
70 W Madison St.
Chicago, IL 60602
or
Secondary Analyst
Du Trieu
+1-312-368-2091
or
Committee Chairperson
Hylton Heard
Senior Director
+1-212-908-0214
or
Media Relations:
Sendhil Selvaraj, +44 (0) 207 682 7218
sendhil.selvaraj@fitchratings.com

Sharing

Contacts

Fitch Ratings
Primary Analyst
Thomas Kaiser, CPA
Associate Director
+1-312-368-3338
Fitch Ratings, Inc.
70 W Madison St.
Chicago, IL 60602
or
Secondary Analyst
Du Trieu
+1-312-368-2091
or
Committee Chairperson
Hylton Heard
Senior Director
+1-212-908-0214
or
Media Relations:
Sendhil Selvaraj, +44 (0) 207 682 7218
sendhil.selvaraj@fitchratings.com