CHICAGO--(BUSINESS WIRE)--Fitch Ratings affirms Huntington Technology Funding Trust 2014-A and revises the Outlook on class B and C as follows:
--Class A-2 at 'AAAsf' Outlook Stable;
--Class A-3 at 'AAAsf Outlook Stable;
--Class B at 'Asf' Outlook revised to Positive from Stable;
--Class C at 'BBBsf' Outlook revised to Positive from Stable.
KEY RATING DRIVERS
Fitch affirmed Huntington Technology Funding Trust 2014-A formerly known as Macquarie Equipment Funding Trust 2014-A. The affirmation of the notes reflects the credit enhancement (CE) levels available to each class which provides for net loss coverage levels commensurate with the ratings. The Positive Outlooks on classes B and C reflect the growing CE available to the notes which may warrant an upgrade in the next 12-18 months.
Unanticipated increases in the frequency of defaults, or decreases in recovery rates, could produce loss levels higher initial expectation and could result in potential rating actions on the notes. In its initial review, Fitch evaluated the sensitivity of ratings assigned to unrated obligors in order to increased default levels. The transaction 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 currently shows minimal sensitivity to the same stress. However, a material increase in obligor concentrations may impact future sensitivities for this transaction. Initial Key Rating Drivers and Rating Sensitivities are further described in the new issue report published Aug. 13, 2014 available at www.fitchratings.com.
DUE DILIGENCE USAGE
No third party due diligence was provided or reviewed in relation to this rating action.
Fitch's analysis of the Representations and Warranties (R&W) of this transaction can be found in 'Macquarie Equipment Funding Trust 2014-A - 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 26, 2015.
Additional information is available at www.fitchratings.com.
Counterparty Criteria for Structured Finance and Covered Bonds (pub. 14 May 2014)
Criteria for Rating U.S. Equipment Lease and Loan ABS (pub. 23 Dec 2014)
Global Rating Criteria for CLOs and Corporate CDOs (pub. 30 Jul 2015)
Global Structured Finance Rating Criteria (pub. 06 Jul 2015)
Macquarie Equipment Funding Trust 2014-A: Appendix
Dodd-Frank Rating Information Disclosure Form