Fitch Affirms Huntington Technology Funding Trust 2014-A; Revises Outlook on 2 Classes

CHICAGO--()--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.

RATING SENSITIVITIES

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.

Applicable Criteria

Counterparty Criteria for Structured Finance and Covered Bonds (pub. 14 May 2014)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=744158

Criteria for Rating U.S. Equipment Lease and Loan ABS (pub. 23 Dec 2014)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=830328

Global Rating Criteria for CLOs and Corporate CDOs (pub. 30 Jul 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=868908

Global Structured Finance Rating Criteria (pub. 06 Jul 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=867952

Related Research

Macquarie Equipment Funding Trust 2014-A: Appendix

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=760227

Additional Disclosures

Dodd-Frank Rating Information Disclosure Form

https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=989004

Solicitation Status

https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=989004

Endorsement Policy

https://www.fitchratings.com/jsp/creditdesk/PolicyRegulation.faces?context=2&detail=31

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Contacts

Fitch Ratings
Surveillance Analyst
Thomas Kaiser, CPA
Associate Director
+1-312-368-3338
Fitch Ratings Inc.
70 W Madison Street
Chicago, IL 60602
or
Committee Chairperson
Hylton Heard
Senior Director
+1-212-908-0214
or
Media Relations
Sandro Scenga, +1 212-908-0278
sandro.scenga@fitchratings.com

Contacts

Fitch Ratings
Surveillance Analyst
Thomas Kaiser, CPA
Associate Director
+1-312-368-3338
Fitch Ratings Inc.
70 W Madison Street
Chicago, IL 60602
or
Committee Chairperson
Hylton Heard
Senior Director
+1-212-908-0214
or
Media Relations
Sandro Scenga, +1 212-908-0278
sandro.scenga@fitchratings.com