Fitch Affirms MMAF Equipment Finance LLC Series 2011-A, 2012-A & 2014-A

CHICAGO--()--Fitch Ratings has affirmed the outstanding notes of the following MMAF Equipment Finance LLC transactions, and revised Rating Outlooks as shown:

Series 2011-A:

--Class A-4 at 'AAAsf' Outlook Stable

--Class A-5 at 'AAAsf' Outlook Stable

--Class B at 'AAAsf' Outlook Stable

--Class C at 'AAsf' Outlook to Stable from Positive

--Class D at 'Asf' Outlook to Stable from Positive

Series 2012-A:

--Class A-3 at 'AAAsf' Outlook Stable

--Class A-4 at 'AAAsf' Outlook Stable

--Class A-5 at 'AAAsf' Outlook Stable

Series 2014-A:

--Class A-2 at 'AAAsf' Outlook Stable

--Class A-3 at 'AAAsf' Outlook Stable

--Class A-4 at 'AAAsf' Outlook Stable

--Class A-5 at 'AAAsf' Outlook Stable

--Class A-6 at 'AAAsf' Outlook Stable

KEY RATING DRIVERS

Fitch's analysis of MMAF incorporates the derivation of net loss expectations utilizing its proprietary Portfolio Credit Model (PCM) as the collateral pool contains high obligor concentrations, and loss experience on MMAF's managed portfolio is currently well within initial Fitch expectations. This approach is detailed in Fitch's criteria 'Global Rating Criteria for Corporate CDOs,' dated July 25, 2014. All other aspects of this review are consistent with 'Criteria for Rating U.S. Equipment Lease and Loan ABS,' dated Dec. 23, 2014.

The affirmation of the notes reflects credit support available which is consistent with the current ratings for all classes. In addition, collateral performance has been strong to date, and each trust has had limited delinquencies and zero losses. The Outlook revision on the class B and C notes of 2011-A reflects the classes' exposure to increasing obligor concentrations as the transaction amortizes. Fitch will continue to monitor these transactions and may take additional rating actions in the event of changes in performance and credit enhancement measures.

RATING SENSITIVITIES

Unanticipated increases in the frequency of defaults, or decreases in recovery rates, could produce loss levels higher than the base case and could result in potential rating actions on the notes. In its initial review, Fitch evaluated the sensitivity of ratings assigned to unrated obligors to increased default levels. The transaction did show significantly more sensitivity to higher default rates, which Fitch stressed by assuming all unrated obligors carry a 'CCC' Issuer Default Rating. As a result of increased credit enhancement, the transactions currently show minimal sensitivities to the same stress.

Additionally at close, Fitch's analysis found that the transaction displays relatively modest sensitivity to different recovery rates. Initial key rating drivers and rating sensitivities are further described in the new issue reports published on Fitch's website.

Fitch's analysis of the Representations and Warranties (R&W) of the 2012-A and 2014-A transactions can be found in the reports titled 'MMAF Equipment Finance LLC Series 2012-A - Appendix' and MMAF Equipment Finance LLC Series 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 and Related Research:

--'Criteria for Rating U.S. Equipment Lease and Loan ABS' (Dec 23, 2014);

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

--'Global Structured Finance Rating Criteria' dated August 4, 2014;

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

--'MMAF Equipment Finance LLC Series 2011-A' dated June 18, 2011

--'MMAF Equipment Finance LLC Series 2012-A (US ABS)' dated June 11, 2012

--'MMAF Equipment Finance LLC Series 2012-A - Appendix' dated June 11, 2012

--'MMAF Equipment Finance LLC Series 2014-A (US ABS)' dated May 29, 2014

--'MMAF Equipment Finance LLC Series 2014-A - Appendix' dated May 29, 2014

Applicable Criteria and Related Research:

MMAF Equipment Finance LLC Series 2012-A -- Appendix

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=681340

MMAF Equipment Finance LLC Series 2012-A (US ABS)

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=681202

Representations, Warranties and Enforcement Mechanisms in Global Structured Finance Transactions

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=863817

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=864268

Criteria for Rating U.S. Equipment Lease and Loan ABS

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

Global Rating Criteria for Corporate CDOs

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

MMAF Equipment Finance LLC 2014-A (US ABS)

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=749216

MMAF Equipment Finance LLC 2014-A - Appendix

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=749293

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=984283

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

Contacts

Fitch Ratings
Primary Analyst
Thomas Kaiser, CPA
Associate Director
+1 312-368-3338
Fitch Ratings, Inc.
70 W. Madison Street
Chicago, IL 60602
or
Secondary Analyst
Hylton Heard
+1 212-908-0214
or
Committee Chairperson
Du Trieu
Senior Director
+1 312-368-2068
or
Media Relations:
Sandro Scenga, +1 212-908-0278
sandro.scenga@fitchratings.com

Contacts

Fitch Ratings
Primary Analyst
Thomas Kaiser, CPA
Associate Director
+1 312-368-3338
Fitch Ratings, Inc.
70 W. Madison Street
Chicago, IL 60602
or
Secondary Analyst
Hylton Heard
+1 212-908-0214
or
Committee Chairperson
Du Trieu
Senior Director
+1 312-368-2068
or
Media Relations:
Sandro Scenga, +1 212-908-0278
sandro.scenga@fitchratings.com