NEW YORK--(BUSINESS WIRE)--As part of its ongoing surveillance, Fitch Ratings affirms the ratings of four outstanding classes of the Nissan Auto Lease Trust 2014-B. A full list of rating action follows at the end of this press release.
KEY RATING DRIVERS
The affirmations reflect the increase in credit enhancement since closing and credit and residual performance that remain consistent with Fitch's initial expectations to date. The Stable Outlook reflects Fitch's expectation that the notes will remain sufficiently enhanced to cover stressed loss levels consistent with the current ratings.
Despite the affirmations, residual performance for the NMAC platform has slightly weakened over the last year. However, residual and credit losses remain within Fitch's expectations and we will continue to monitor economic conditions and their impact to trust level performance variables and update the ratings accordingly.
Unanticipated increases in the frequency of defaults and loss severity could produce loss levels higher than the current projected base case loss proxy and impact available loss coverage and multiples levels for the transaction. Lower loss coverage could impact ratings and Rating Outlooks, depending on the extent of the decline in coverage.
To date, the transaction has exhibited credit and residual performance consistent with Fitch's initial expectations with rising loss coverage. Despite the growth in credit enhancement to date, the residual portion of the transaction continues to become a larger percentage of the securitization value. As a result, the transaction continues to be sensitive to fluctuations in residual values. A material deterioration in vehicle values could potentially have a negative impact on the outstanding ratings.
DUE DILIGENCE USAGE
No third-party due diligence was provided or reviewed in relation to this rating action.
Fitch's analysis of the Representation and Warranties (R&W) of the transaction in this review can be found in 'Nissan Auto Lease Trust 2014-B -- 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 the Global Structured Finance Transactions' dated June 12, 2015.
Fitch has affirmed the following ratings:
Nissan Auto Lease Trust 2014-B:
--Class A2-a at 'AAAsf'; Outlook Stable;
--Class A2-b at 'AAAsf'; Outlook Stable;
--Class A-3 at 'AAAsf'; Outlook Stable;
--Class A-4 at 'AAAsf'; Outlook Stable.
Additional information is available at www.fitchratings.com
Criteria for Rating U.S. Auto Lease ABS (pub. 24 Apr 2015)
Global Structured Finance Rating Criteria (pub. 06 Jul 2015)
Nissan Auto Lease Trust 2014-B -- Appendix
Dodd-Frank Rating Information Disclosure Form