Fitch Affirms Two & Upgrades Two Class of Ford Credit Auto Lease Trust 2012-B

NEW YORK--()--Fitch Ratings has taken the following ratings actions on the Ford Credit Auto Lease Trust 2012-B series as part of its ongoing surveillance:

Ford Credit Auto Lease Trust 2012-B:

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

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

--Class B notes upgraded to 'AAAsf' from 'AAsf'; Outlook revised to Stable from Positive;

--Class C notes upgraded to 'AAsf' from 'Asf'; Outlook Positive.

KEY RATING DRIVERS

The affirmations to the class A notes and upgrade to class B and C notes reflect the increase in credit enhancement since closing and strong collateral performance. Credit losses have been well within Fitch's expectations to date and residual performance has been producing cumulative gains. The Stable Outlooks for the class A and B notes reflect Fitch's expectation that the notes will remain sufficiently enhanced to cover stressed loss levels consistent with the updated ratings. The Outlook Positive for the class C reflects Fitch's view that if the notes continue to perform well an upgrade is likely to occur within the next 12 - 18 months.

Fitch will continue to monitor economic conditions and their impact and the trust level performance variables and update the ratings accordingly.

RATING SENSITIVITY

Unanticipated increases in the frequency of defaults or deterioration in vehicle values could produce loss levels higher than the current expectations and impact available loss coverage. Lower loss coverage could impact ratings and Rating Outlooks, depending on the extent of the decline in coverage.

To date, the transaction has exhibited strong credit and residual performance, well within Fitch's initial expectations with rising loss coverage. Due to the growing credit enhancement levels and increased loss coverage afforded to the notes, a substantial deterioration in used vehicle values would have to occur to have a negative impact on the updated ratings.

Fitch's stress and rating sensitivity analyses are discussed in the presale reports titled 'Ford Credit Auto Lease Trust 2012-B (US ABS)', dated September 2012, which is available on Fitch's web site.

Fitch's analysis of the Representations and Warranties (R&W) of this transaction can be found in 'Ford Credit Auto Lease Trust 2012-B -- 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'.

The information used to assess these ratings was sourced from the issuer, periodic trustee reports, note valuation reports, and the public domain.

Applicable Criteria and Related Research:

--'Criteria for Rating U.S. Auto Lease ABS' (April 2014);

--'Global Structured Finance Rating Criteria' (August 2014);

--'Ford Credit Auto Lease Trust 2012-B (US ABS)' (September 2012);

--'Ford Credit Auto Lease Trust 2012-B -- Appendix' (September 2012).

Applicable Criteria and Related Research:

Criteria for Rating U.S. Auto Lease ABS

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=746763

Global Structured Finance Rating Criteria

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

Ford Credit Auto Lease Trust 2012-B (US ABS)

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=689743

Ford Credit Auto Lease Trust 2012-B -- Appendix

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=689864

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=849834

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
Surveillance Analyst
Eugene Kushnir
Associate Director
+1 212-908-0830
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Committee Chairperson
Bradley Sohl
Senior Director
+1 212-908-0792
or
Media Relations, New York
Sandro Scenga, +1 212-908-0278
sandro.scenga@fitchratings.com

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Contacts

Fitch Ratings
Surveillance Analyst
Eugene Kushnir
Associate Director
+1 212-908-0830
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Committee Chairperson
Bradley Sohl
Senior Director
+1 212-908-0792
or
Media Relations, New York
Sandro Scenga, +1 212-908-0278
sandro.scenga@fitchratings.com