CHICAGO--(BUSINESS WIRE)--Fitch Ratings has taken the following rating actions on the outstanding Captec Franchise Receivables Trusts as detailed below:
Series 1998-1
--Class B affirmed at 'CCCsf'/RE 100%;
--Class C affirmed at 'Dsf'/RE 0%.
Series 2000-1
--Class C withdrawn;
--Class D withdrawn;
--Class E withdrawn;
--Class F withdrawn.
KEY RATING DRIVERS
The affirmation of the class B notes in 1998-1 reflects the likelihood of the notes paying in full and also the reliance on the four remaining obligors. The large interest shortfall to the class C notes eliminates the possibility of the notes ever receiving principal.
Fitch will continue to monitor this transaction and may take additional rating action in the event of changes in performance and credit enhancement measures.
The remaining notes in 2000-1 have been withdrawn as the notes have all defaulted.
RATING SENSITIVITIES
Unanticipated increases in the frequency of defaults 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.
The performance of the transactions will be affected by the performance of the largest obligors. Any prepayments will have a positive impact on the performance and future net loss coverage. Conversely, delinquencies and defaults from the loans to the largest obligor will have a negative impact on the remaining life of the transaction.
Additional information is available at 'www.fitchratings.com'.
Applicable Criteria and Related Research:
--'Surveillance Criteria for Franchise Loan ABS' (May 8, 2014);
--'Structured Finance Recovery Estimates for Distressed Securities' (Nov. 18, 2011);
--'Global Structured Finance Rating Criteria' (Aug 4, 2014).
Applicable Criteria and Related Research:
Global Structured Finance Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=754389
Structured Finance Recovery Estimates for Distressed Securities
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=656557
Surveillance Criteria for Franchise Loan ABS
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=747882
Additional Disclosure
Solicitation Status
http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=861794
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