CHICAGO--(BUSINESS WIRE)--Fitch Ratings has affirmed the notes issued by various Sierra Timeshare Receivables transactions as detailed below:
Sierra Timeshare 2011-1 Receivables Funding, LLC
--Class A notes at 'Asf'; Outlook Stable;
--Class B notes at 'BBBsf'; Outlook Stable;
--Class C notes at 'BB-sf'; Outlook Stable.
Sierra Timeshare 2012-1 Receivables Funding, LLC
--Class A notes at 'Asf'; Outlook Stable;
--Class B notes at 'BBBsf'; Outlook Stable.
Sierra Timeshare 2013-1 Receivables Funding, LLC
--Class A notes at 'Asf'; Outlook Stable;
--Class B notes at 'BBBsf'; Outlook Stable.
Sierra Timeshare 2014-1 Receivables Funding, LLC
--Class A notes at 'Asf'; Outlook Stable;
--Class B notes at 'BBBsf'; Outlook Stable.
These affirmations reflect the ability of each transaction's credit enhancement to provide loss coverage consistent with the current rating levels. The Stable Rating Outlooks reflect Fitch's expectation that the notes will remain sufficiently enhanced to cover the stressed loss levels consistent with the current ratings for the next 12 to 18 months.
Fitch will continue to monitor economic conditions and their impact as they relate to timeshare asset-backed securities and the trust level performance variables and update the ratings accordingly.
Loss Sensitivity
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 affect ratings and Rating Outlooks, depending on the extent of the decline in coverage.
To date, the transactions have exhibited minimal losses (due to repurchases) and default performance is consistent with Fitch's initial expectations. Default coverage and multiple levels are consistent with the current ratings. A material deterioration in performance would have to occur within the asset pools to have potential negative impact on the outstanding ratings.
Fitch's stress and rating sensitivity analyses are discussed in the presale reports titled 'Sierra Timeshare 2011-1 Receivables Funding, LLC (US ABS)', dated April 14, 2011, 'Sierra Timeshare 2012-1 Receivables Funding, LLC (US ABS)', dated March 12, 2012, 'Sierra Timeshare 2013-1 Receivables Funding, LLC (US ABS)', dated March 11, 2013, and 'Sierra Timeshare 2014-1 Receivables Funding, LLC (US ABS)', dated March 10, 2014 , which are available on Fitch's web site.
Fitch's analysis of the Representations and Warranties (R&W) of this transaction can be found in 'Sierra Timeshare 2012-1 Receivables Funding LLC - Appendix','Sierra Timeshare 2013-1 Receivables Funding LLC - Appendix', and 'Sierra Timeshare 2014-1 Receivables Funding LLC - 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 October 31, 2014.
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. Timeshare Loan ABS' (June 9, 2014);
--'Global Structured Finance Rating Criteria' (Aug. 4, 2014);
--'Sierra Timeshare 2011-1 Receivables Funding,LLC' (April 14, 2011);
--'Sierra Timeshare 2012-1 Receivables Funding, LLC' (March 12, 2012);
--'Sierra Timeshare 2012-1 Receivables Funding, LLC--Appendix (March 12, 2012);
--'Sierra Timeshare 2013-1 Receivables Funding, LLC' (March 11, 2013);
--'Sierra Timeshare 2013-1 Receivables Funding, LLC--Appendix' (March 11, 2013);
--'Sierra Timeshare 2014-1 Receivables Funding, LLC' (March 10, 2014);
--'Sierra Timeshare 2014-1 Receivables Funding, LLC Appendix' (March 10, 2014).
Applicable Criteria and Related Research:
Criteria for Rating U.S. Timeshare Loan ABS
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=749780
Global Structured Finance Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=754389
Sierra Timeshare 2011-1 Receivables Funding LLC
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=701684
Sierra Timeshare 2012-1 Receivables Funding LLC -- Appendix
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=674129
Sierra Timeshare 2013-1 Receivables Funding LLC (US ABS)
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=703536
Sierra Timeshare 2014-1 Receivables Funding LLC -- Appendix
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=739745
Sierra Timeshare 2013-1 Receivables Funding LLC -- Appendix
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=703664
Sierra Timeshare 2014-1 Receivables Funding LLC (US ABS)
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=739357
Additional Disclosure
Solicitation Status
http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=978754
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