Fitch Affirms MMAF Equipment Finance LLC Series 2013-A

CHICAGO--()--Fitch Ratings Inc. has affirmed the ratings of MMAF Equipment Finance LLC series 2013-A as follows:

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

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

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

--Class A-5 at 'AAAsf' Outlook Stable.

KEY RATING DRIVERS

Fitch's analysis of MMAF 2013-A incorporates the derivation of net loss expectations using its proprietary Portfolio Credit Model (PCM) as the collateral pool contains high obligor concentrations, and loss experience on MMAF's managed portfolio is currently well within initial Fitch expectations. This approach is detailed in Fitch's criteria 'Global Rating Criteria for Corporate CDOs,' dated July 25, 2014. All other aspects of this review are consistent with 'Criteria for Rating U.S. Equipment Lease and Loan ABS,' dated Dec. 19, 2013.

The affirmation of the class A notes reflects credit support available which is consistent with the current ratings. In addition, collateral performance has been strong to date as the trust has had limited delinquencies and zero losses. Fitch will continue to monitor this transaction and may take additional rating actions in the event of changes in performance and credit enhancement measures.

RATING SENSITIVITY

Unanticipated increases in the frequency of defaults, or decreases in recovery rates, could produce loss levels higher than the base case and could result in potential rating actions on the notes. In its initial review, Fitch evaluated the sensitivity of ratings assigned to unrated obligors to increased default levels. The transaction did show significantly more sensitivity to higher default rates, which Fitch stressed by assuming all unrated obligors carry a 'CCC' Issuer Default Rating. As a result of increased credit enhancement, the transaction currently shows minimal sensitivity to the same stress.

In addition, at close, Fitch's analysis found that the transaction displays relatively modest sensitivity to different recovery rates. Initial key rating drivers and rating sensitivities are further described in the new issue reports published on Aug. 5, 2013, available at www.fitchratings.com.

Fitch's analysis of the Representations and Warranties (R&W) of these transactions can be found in 'MMAF Equipment Finance LLC Series 2013-A - 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' (Dec 19, 2013);

--'Global Rating Criteria for Corporate CDOs' (July 25, 2014);

--'Global Structured Finance Rating Criteria' (May 20, 2014).

Applicable Criteria and Related Research:

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=754389

Global Rating Criteria for Corporate CDOs

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=753057

Criteria for Rating U.S. Equipment Lease and Loan ABS

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=726362

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=847294

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

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
Hylton Heard
+1-212-908-0214
or
Committee Chairperson
Bradley Sohl
Senior Director
+1-212-908-0792
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
Associate Director
+1-312-368-3338
Fitch Ratings, Inc.
70 W. Madison Street
Chicago, IL 60602
or
Secondary Analyst
Hylton Heard
+1-212-908-0214
or
Committee Chairperson
Bradley Sohl
Senior Director
+1-212-908-0792
or
Media Relations
Sandro Scenga, New York, +1-212-908-0278
sandro.scenga@fitchratings.com