Fitch Publishes Updated Global Rental Fleet ABS Criteria

NEW YORK--()--Fitch Ratings today published an updated Asset-Backed sector specific criteria report titled 'Global Rating Criteria for Rental Fleet ABS.'

The updated criteria report is substantially unchanged from the prior one. It updates and replaces the prior criteria report with the title 'Global Rating Criteria for Rental Fleet ABS', dated Sept. 11, 2013.

The report presents Fitch's analytical approach to rating Global Rental Fleet ABS and outlines the unique features of these transactions. Additionally, the report details key rating drivers associated with Global Rental Fleet as detailed below.

Key Rating Drivers

Rental Fleet Company/Servicer Operations: Fitch's analysis includes a qualitative review of the rental fleet company (RFC)/servicer's operations, as well as a review of any backup servicers and liquidation agents in place in the transaction and their ability to effectively replace the RFC and conduct a fleet liquidation in an orderly, efficient manner.

Collateral Analysis: Fitch analyzes collateral characteristics and the diversity of a securitized pool, including: vehicle make, model and segment concentrations; manufacturer/brand mix; age of vehicles; and geographic concentrations. Based on the diversity designation, Fitch applies different levels of stress to the expected liquidation proceeds of the vehicles.

Vehicle Value Risks: Fitch analyzes the risk of collateral value depreciation prior to a vehicle liquidation in a bankruptcy scenario and the residual risk of realizing mark-to-market losses on the actual sale of the collateral. This analysis is driven by historical vehicle depreciation rates and the historical vehicle value volatility observed in the wholesale vehicle market.

Macroeconomic Risks: The economic environment can have a material impact on rental fleet ABS ratings. Fitch takes into consideration the strength of the economy, as well as future expectations, by assessing key macroeconomic indicators such as unemployment.

Structural Analysis: Fitch analyzes the structural features present by stressing the liquidation timing, vehicle depreciation, disposition losses and expected carrying costs of the transaction at various rating levels.

Legal Structure: Fitch's legal analysis includes a review of the transaction's legal structure and opinions to verify, among other factors, the legal isolation of the assets from the originator, legal transfer of the assets to the issuing vehicle and tax status of the issuing vehicle.

Additional information is available at 'www.fitchratings.com'

Applicable Criteria and Related Research: Global Rating Criteria for Rental Fleet ABS

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=765228

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Contacts

Fitch Ratings
Hylton Heard
Senior Director
+1-212-908-0214
Fitch Ratings, Inc.
1 State Street Plaza
New York, NY 10004
or
John Bella, Jr.
Managing Director
+1-212-908-0243
or
Media Relations:
Sandro Scenga, +1-212-908-0278 (New York)
sandro.scenga@fitchratings.com

Contacts

Fitch Ratings
Hylton Heard
Senior Director
+1-212-908-0214
Fitch Ratings, Inc.
1 State Street Plaza
New York, NY 10004
or
John Bella, Jr.
Managing Director
+1-212-908-0243
or
Media Relations:
Sandro Scenga, +1-212-908-0278 (New York)
sandro.scenga@fitchratings.com