Fitch Affirms 5 Sierra Timeshare Receivables Transactions; Revises Outlooks on 2013-2 Transaction

CHICAGO--()--Fitch Ratings has affirmed the notes issued by various Sierra Timeshare Receivables transactions as follows:

Sierra Timeshare 2010-3 Receivables Funding, LLC

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

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

Sierra Timeshare 2011-2 Receivables Funding, LLC

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

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

--Class C notes at 'BBsf'; Outlook Stable.

Sierra Timeshare 2012-2 Receivables Funding, LLC

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

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

Sierra Timeshare 2013-2 Receivables Funding, LLC

--Class A notes at 'Asf'; Outlook to Positive from Stable;

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

--Class C notes at 'BBsf'; Outlook to Positive from Stable.

Sierra Timeshare 2014-2 Receivables Funding, LLC

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

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

These affirmations reflect the ability of each transaction's credit enhancement to provide loss coverage consistent with the current rating levels. The Stable Rating Outlooks reflect Fitch's expectation that the notes will remain sufficiently enhanced to cover the stressed loss levels consistent with the current ratings. The Positive Rating Outlooks assigned to the 2013-2 transaction allow for the possibility of further positive rating action in the next 12 to 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.

Loss Sensitivity

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 transactions have exhibited zero losses (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 pools to have potential negative impact on the outstanding ratings.

Fitch's stress and rating sensitivity analyses are discussed in the presale reports titled 'Sierra Timeshare 2010-3 Receivables Funding, LLC (US ABS)', dated Oct. 12, 2010, 'Sierra Timeshare 2011-2 Receivables Funding, LLC (US ABS)', dated Aug. 22, 2011, 'Sierra Timeshare 2012-2 Receivables Funding, LLC (US ABS)', dated Jul. 9, 2012, 'Sierra Timeshare 2013-2 Receivables Funding, LLC (US ABS)', dated July 15, 2013, and 'Sierra Timeshare 2014-2 Receivables Funding, LLC (US ABS)', dated July 1, 2014, which are available on Fitch's web site.

Fitch's analysis of the Representations and Warranties (R&W) of this transaction can be found in 'Sierra Timeshare 2012-2 Receivables Funding LLC - Appendix', 'Sierra Timeshare 2013-2 Receivables Funding LLC - Appendix' and 'Sierra Timeshare 2014-2 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 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. Timeshare Loan ABS' (June 14, 2014);

--'Global Structured Finance Rating Criteria' (March 31, 2015);

--'Sierra Timeshare 2010-3 Receivables Funding, LLC' (Oct 12, 2010);

--'Sierra Timeshare 2011-2 Receivables Funding, LLC' (Aug 22, 2011);

--'Sierra Timeshare 2012-2 Receivables Funding, LLC' (Jul 9, 2012);

--'Sierra Timeshare 2012-2 Receivables Funding LLC' - Appendix (Jul 9, 2012);

--'Sierra Timeshare 2013-2 Receivables Funding, LLC' (Jul 15, 2013);

--'Sierra Timeshare 2013-2 Receivables Funding LLC' - Appendix (Jul 15, 2013);

--'Sierra Timeshare 2014-2 Receivables Funding, LLC' (Jul 1, 2014);

--'Sierra Timeshare 2014-2 Receivables Funding LLC' - Appendix (Jul 1, 2014).

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=864268

Sierra Timeshare 2010-3 Receivables Funding LLC

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=565485

Sierra Timeshare 2011-2 Receivables Funding LLC (US ABS)

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=648733

Sierra Timeshare 2012-2 Receivables Funding LLC (US ABS)

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=683403

Sierra Timeshare 2012-2 Receivables Funding LLC -- Appendix

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=683490

Sierra Timeshare 2013-2 Receivables Funding LLC

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=712983

Sierra Timeshare 2013-2 Receivables Funding LLC -- Appendix

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=713087

Sierra Timeshare 2014-2 Receivables Funding LLC (US ABS)

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=751407

Sierra Timeshare 2014-2 Receivables Funding LLC -- Appendix

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=751647

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=985016

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Contacts

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