Fitch Affirms Wheels SPV2, LLC, Series 2014-1

CHICAGO--()--Fitch Ratings has affirmed four classes and revised the Outlook for two classes of notes issued by Wheels SPV2, LLC Series 2014-1 as detailed below:

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

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

--Class B notes at 'AAsf'; Rating Outlook to Positive from Stable;

--Class C notes at 'A-sf'; Rating Outlook to Positive from Stable;

The Wheels SPV2, LLC Series 2014-1 pool has collateral characteristics and risks similar to corporate collateralized debt obligations (CDOs) and auto lease securitizations. As such, Fitch used elements of the rating methodologies detailed in the criteria for both of these asset classes which include 'Global Rating Criteria for Corporate CDOs' dated July 2014 and 'Criteria for Rating U.S. Auto Lease ABS' dated April 2015. For detail regarding the application of these criteria, please refer to the Wheels SPV2, LLC, Series 2014-1 (US ABS) presale report available on 'www.fitchratings.com'.

KEY RATING DRIVERS

As compared to the initial review, the obligor and industry concentrations remain similar. Fitch's analysis of Wheels SPV2, LLC Series 2014-1 incorporates the derivation of net loss expectations utilizing its proprietary Portfolio Credit Model, the results of which continue to support the assigned ratings.

The affirmations of the notes reflect the strong pool composition and performance of the underlying receivables as evidenced by the low delinquency and loss rates, as well as increasing support provided by credit enhancement (CE). The Positive Outlook on the class B and C notes reflect the expectation that CE will continue to grow providing greater protection for the classes and may warrant rating actions in the future.

Fitch will continue to monitor economic conditions and their impact and the trust level performance variables and update the ratings accordingly.

RATING SENSITIVITIES

Unanticipated increases in the frequency of defaults could produce default levels higher than the projected base case default proxy and impact available default coverage and multiples levels. Lower default coverage could impact ratings and Rating Outlooks, depending on the extent of the decline in coverage. In Fitch's initial review of the transaction, the notes were found to have limited sensitivity to changes in obligor credit profiles and recovery rates associated with the high concentration of truck collateral in the pool. A material deterioration in performance would have to occur within the asset pool to have potential negative impact on the outstanding ratings.

For further detail on the rating sensitivity analysis, please refer to Fitch's presale titled 'Wheels SPV2, LLC, Series 2014-1 (US ABS)' available at 'www.fitchratings.com'.

Fitch's analysis of the Representations and Warranties (R&W) of this transaction can be found in the reports titled ' Wheels SPV2, LLC, Series 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 26, 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' (April 24 2015);

--'Criteria Rating Criteria for Corporate CDOs' (July 25, 2014);

--'Global Structured Finance Rating Criteria' (Aug. 4, 2014);

--'Representations, Warranties, and Enforcement Mechanisms in Global Structured Finance Transactions' (March 26, 2015);

--'Wheels SPV2, LLC, Series 2014-1 (US ABS)' (May 7, 2014);

--'Wheels SPV2, LLC, Series 2014-1 -- Appendix' (May 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=864500

Global Rating Criteria for Corporate CDOs

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=753057

Global Structured Finance Rating Criteria - Effective from 4 August 2014 to 31 March 2015

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=863817

Wheels SPV 2, LLC, Series 2014-1 (US ABS)

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=748100

Wheels SPV 2, LLC, Series 2014-1 -- Appendix

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=748160

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=984281

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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
Du Trieu
Senior Director
+1 312-368-2091
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
Du Trieu
Senior Director
+1 312-368-2091
or
Media Relations:
Sandro Scenga, +1 212-908-0278
sandro.scenga@fitchratings.com