Fitch Affirms BMW Vehicle Lease Trust 2014-1

CHICAGO--()--Fitch Ratings has affirmed the notes issued by BMW Vehicle Lease Trust 2014-1 as part of its ongoing surveillance, as follows:

--Class A-2 notes at 'AAAsf'; Outlook Stable;

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

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

KEY RATING DRIVERS

The affirmations reflect loss coverage levels consistent with the current ratings. Credit and residual performance has been within Fitch's expectations to date. The Stable Outlook reflects Fitch's expectation for loss coverage and credit enhancement to continue to improve as the transactions amortize.

RATING SENSITIVITIES

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, inside 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 'BMW Vehicle Lease Trust 2014-1 (US ABS)', dated April 7, 2014 available on Fitch's web site.

Fitch's analysis of the Representations and Warranties (R&W) of the transaction can be found in 'BMW Vehicle Lease Trust 2014-1 -- 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 March 25, 2015.

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' dated April 24, 2014;

--'Global Structured Finance Rating Criteria' dated March 31, 2015;

--'Representations, Warranties, and Enforcement Mechanisms in Global Structured Finance Transactions' dated March 25, 2015;

--'BMW Vehicle Lease Trust 2014-1 (US ABS)' dated April 7, 2014;

--'BMW Vehicle Lease Trust 2014-1 - Appendix' dated April 7, 2014.

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=864268

Representations, Warranties and Enforcement Mechanisms in Global Structured Finance Transactions

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=863817

BMW Vehicle Lease Trust 2014-1 (US ABS)

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=744998

BMW Vehicle Lease Trust 2014-1 -- Appendix

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=745321

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=982522

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Contacts

Fitch Ratings
Primary Analyst
Margaret Rowe
Director
+1 312-368-3167
Fitch Ratings, Inc.
70 West Madison Street
Chicago, IL 60602
or
Committee Chairperson
Du Trieu
Senior Director
+1 312-368-2091
or
Media Relations:
Sandro Scenga, +1 212-908-0278
sandro.scenga@fitchratings.com

Contacts

Fitch Ratings
Primary Analyst
Margaret Rowe
Director
+1 312-368-3167
Fitch Ratings, Inc.
70 West Madison Street
Chicago, IL 60602
or
Committee Chairperson
Du Trieu
Senior Director
+1 312-368-2091
or
Media Relations:
Sandro Scenga, +1 212-908-0278
sandro.scenga@fitchratings.com