Fitch Affirms Sierra Timeshare 2013-3 Class A & B Notes

CHICAGO--()--Fitch Ratings has affirmed the following classes of Sierra Timeshare 2013-3 Receivables Funding, LLC notes as follows:

--Class A notes at 'Asf'; Outlook Stable;

--Class B notes at 'BBBsf'; Outlook Stable.

KEY RATING DRIVERS

The rating affirmations reflect the ability of the transaction's credit enhancement (CE) to provide loss coverage consistent with the current ratings. The Stable Outlook for both classes of notes reflects Fitch's expectation that the notes will remain sufficiently enhanced to cover stressed loss levels consistent with the current ratings for the next 12 - 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.

RATING SENSITIVITIES

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 transaction has exhibited no defaults (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 pool to have a potential negative impact on the outstanding ratings.

Fitch's stress and rating sensitivity analyses are discussed in the presale report titled 'Sierra Timeshare 2013-3 Receivables Funding, LLC (US ABS)', dated Oct. 28, 2013, which is available on Fitch's web site.

Fitch's analysis of the Representations and Warranties (R&W) can be found in 'Sierra Timeshare 2013-3 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 April 17, 2012.

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);

--'Representations, Warranties, and Enforcement Mechanisms in Global Structured Finance Transactions - Amended' (April 17, 2012);

--'Sierra Timeshare 2013-3 Receivables Funding LLC (US ABS)' (Oct. 28, 2013);

--'Sierra Timeshare 2013-3 Receivables Funding LLC - Appendix' (Oct. 28, 2013).

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

Representations, Warranties, and Enforcement Mechanisms in Global Structured Finance Transactions

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=676496

Sierra Timeshare 2013-3 Receivables Funding LLC (US ABS)

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=721743

Sierra Timeshare 2013-3 Receivables Funding LLC - Appendix

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=721984

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=890114

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Contacts

Fitch Ratings
Surveillance Analyst
Andrew Tinari, +1 312-368-3127
Analyst
Fitch Ratings, Inc.
70 West Madison Street
Chicago, IL 60602
or
Secondary Analyst
Margaret Rowe, +1 312-368-3167
Director
or
Committee Chairperson
Du Trieu, +1 312-368-2091
Senior Director
or
Media Relations:
Sandro Scenga, +1 212-908-0278
sandro.scenga@fitchratings.com

Contacts

Fitch Ratings
Surveillance Analyst
Andrew Tinari, +1 312-368-3127
Analyst
Fitch Ratings, Inc.
70 West Madison Street
Chicago, IL 60602
or
Secondary Analyst
Margaret Rowe, +1 312-368-3167
Director
or
Committee Chairperson
Du Trieu, +1 312-368-2091
Senior Director
or
Media Relations:
Sandro Scenga, +1 212-908-0278
sandro.scenga@fitchratings.com