Fitch Affirms 6 Series of GE Dealer Floorplan Master Note Trust

CHICAGO--()--Fitch Ratings has affirmed the following outstanding notes issued by the GE Dealer Floorplan Master Note Trust (GE DFMT) as a result of its annual review of the trust:

GE DFMNT, Series 2012-2

--Class A: at 'AAAsf'; Outlook Stable;

--Class B: at 'Asf'; Outlook Stable;

--Class C: at 'BBBsf'; Outlook Stable;

Class D is Not Rated by Fitch.

GE DFMNT, Series 2013-1

--Class A: at 'AAAsf'; Outlook Stable;

--Class B: at 'Asf'; Outlook Stable;

--Class C: at 'BBBsf'; Outlook Stable;

Class D is Not Rated by Fitch.

GE DFMNT, Series 2014-1

--Class A: at 'AAAsf'; Outlook Stable;

--Class B: at 'Asf'; Outlook Stable;

--Class C: at 'BBBsf'; Outlook Stable.

GE DFMNT, Series 2014-2

--Class A: at 'AAAsf'; Outlook Stable;

--Class B: at 'Asf'; Outlook Stable;

--Class C: at 'BBBsf'; Outlook Stable.

GE DFMNT, Series 2015-1

--Class A: at 'AAAsf'; Outlook Stable;

--Class B: at 'Asf'; Outlook Stable;

--Class C: at 'BBBsf'; Outlook Stable;

Class D is Not Rated by Fitch.

GE DFMNT, Series 2015-2

--Class A: at 'AAAsf'; Outlook Stable;

--Class B: at 'Asf'; Outlook Stable;

--Class C: at 'BBBsf'; Outlook Stable;

Class D is Not Rated by Fitch.

KEY RATING DRIVERS

The affirmation of the notes is reflective of the available loss coverage and stable performance of the trusts' collateral, which all continue to perform within Fitch's expectations. The rating actions are based on the application of Fitch's Global Dealer Floorplan (DFP) ABS criteria. In applying its DFP rating criteria, Fitch determined GE DFMNT to be a Category A platform. Based on its low systemic risk profile, Fitch's analysis embodied two distinct approaches - Historical Default Multiplier base case approach, and the Concentration Coverage approach. Under each approach the trust was able to withstand stresses commensurate with Fitch's assigned ratings and Rating Outlooks.

The assets securing the notes consist of an undivided interest in a pool of diversified revolving DFP receivables that were originated by GE Commercial Distribution Finance and other originators, and are utilized to provide wholesale financing to U.S. dealers and are secured by the products financed. GE DFMNT is backed by products from approximately 13 different product lines, including marine, recreational vehicles, motor sports, power sports, consumer electronics, appliances, and transportation.

RATING SENSITIVITIES

To conduct rating sensitivity for the issued notes, under a category B Dealer Floorplan platform, Fitch assumes portfolio default levels at 10%, 25%, and 40%, and under two recovery-level scenarios of 50% and 30%. Fitch modeled these series with the assumption that the above defaults have occurred and recoveries stressed accordingly, reflecting asset performance in a stressed environment. Remaining expected loss levels were compared with the stressed loss assumption grid commensurate with various rating levels.

To date, performance for the trust has remained strong. A material deterioration would have to occur in performance to have potential negative impact on the ratings for each series.

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 transactions in this review can be found in the respective appendices to each presale report. 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 June 12, 2015.

Additional information is available at www.fitchratings.com.

Applicable Criteria

Counterparty Criteria for Structured Finance and Covered Bonds (pub. 14 May 2014)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=744158

Criteria for Servicing Continuity Risk in Structured Finance (pub. 17 Jul 2014)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=752340

Global Rating Criteria for Dealer Floorplan ABS (pub. 06 Jan 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=833468

Global Structured Finance Rating Criteria (pub. 06 Jul 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=867952

Related Research

GE Dealer Floorplan Master Note Trust, Series 2012-2 -- Appendix

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=678755

GE Dealer Floorplan Master Note Trust, Series 2014-1 -- Appendix

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=752276

GE Dealer Floorplan Master Note Trust, Series 2014-2 -- Appendix

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=792928

GE Dealer Floorplan Master Note Trust, Series 2015-1 - Appendix

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=860748

GE Dealer Floorplan Master Note Trust, Series 2015-2 -- Appendix

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=860790

GE Dealer Floorplan Master Note Trust, Series2013-1 -- Appendix

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=706823

Additional Disclosures

Dodd-Frank Rating Information Disclosure Form

https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=996519

Solicitation Status

https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=996519

Endorsement Policy

https://www.fitchratings.com/jsp/creditdesk/PolicyRegulation.faces?context=2&detail=31

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Contacts

Fitch Ratings
Primary Analyst
Andrew Tinari
Analyst
+1 312-368-3127
Fitch Ratings, Inc.
70 West Madison Street
Chicago, IL 60602
or
Committee Chairperson
Du Trieu
Senior Director
+1 212-908-0870
or
Media Relations
Sandro Scenga, +1-212-908-0278
sandro.scenga@fitchratings.com

Contacts

Fitch Ratings
Primary Analyst
Andrew Tinari
Analyst
+1 312-368-3127
Fitch Ratings, Inc.
70 West Madison Street
Chicago, IL 60602
or
Committee Chairperson
Du Trieu
Senior Director
+1 212-908-0870
or
Media Relations
Sandro Scenga, +1-212-908-0278
sandro.scenga@fitchratings.com