Fitch Affirms MMAF Equipment Finance LLC Series 2009-A

CHICAGO--()--Fitch Ratings has affirmed MMAF Equipment Finance LLC Series 2009-A as follows:

Class A-4 at 'AAAsf' Outlook Stable;

Class B at 'AAAsf' Outlook Stable;

Class C at 'AAAsf' Outlook Stable;

Class D at 'AAsf' Outlook Positive.

KEY RATING DRIVERS

Fitch's analysis of MMAF 2009-A incorporates the derivation of net loss expectations utilizing its proprietary Portfolio Credit Model (PCM), as the collateral pool contains high obligor concentrations and loss experience on MMAF's managed portfolio is limited and below the initial forecast. This approach is detailed in Fitch's criteria "Global Rating Criteria for Corporate CDOs," dated Aug. 8, 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 class A, B, and C notes at 'AAAsf' and the affirmation of class D at 'AAsf' reflect the credit enhancement (CE) levels, which are commensurate with their ratings. Since close, the transaction has experienced minimal delinquencies and zero losses which has helped increase the CE levels and which Fitch expects to continue increasing. The Positive Outlook on class D reflects Fitch's expectation for the transaction performance and continued CE growth.

RATING SENSITIVITIES

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 initially did show sensitivity to higher default rates, which Fitch stressed by assuming all unrated obligors carry a 'CCC' Issuer Default Rating. As a result of increased CE, the transaction shows minimal sensitivity to the same stress. Fitch's initial analysis is further described in the new issue reports published Dec. 1, 2009.

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

Applicable Criteria and Related Research:

--'MMAF Equipment Finance LLC Series 2009-A' (Dec. 2009);

--'Criteria for Rating U.S. Equipment Lease and Loan ABS' (Dec, 2013);

--'Global Rating Criteria for Corporate CDOs,' dated August, 2014

--'Global Structured Finance Rating Criteria' (August 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

MMAF Equipment Finance LLC Series 2009-A

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=489612

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=898474

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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
Senior Director
+1 212-908-0214
or
Committee Chairperson
Bradley Sohl
Senior Director
+1 212-908-0792
or
Media Relations:
Sandro Scenga, +1 212-908-0278
sandro.scenga@fitchratings.com

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
Senior Director
+1 212-908-0214
or
Committee Chairperson
Bradley Sohl
Senior Director
+1 212-908-0792
or
Media Relations:
Sandro Scenga, +1 212-908-0278
sandro.scenga@fitchratings.com