Fitch Ratings expects to rate the auto fleet lease ABS issued by Enterprise Fleet Financing, LLC Series 2014-1 (EFF 2014-1). The notes will ultimately be backed by payments on a pool of open-end and closed-end vehicle fleet lease contracts for cars, light-duty trucks and other vehicles originated and serviced by Enterprise Fleet Management, Inc. (EFM).

The EFF 2014-1 transaction will be the sixth U.S. term securitization offered by EFM under Rule 144A. Proceeds from the transaction will be used for general funding purposes.

Key Rating Drivers

Credit Quality Obligors: Although substantially all of the collateral pool consists of obligors that are not rated by any nationally recognized statistical rating organization (NRSRO), EFM‘s portfolio has experienced minimal delinquencies and net losses. In its analysis, Fitch conservatively assumed a B rating for all obligors.

Strong Portfolio Diversification: Obligor and industry concentrations have decreased relative to the EFF 2013-2 transaction. The single most concentrated obligor represents 0.64% of the pool, compared with 1.21% in 2013-2. Closed-end leases have decreased to 3.9% versus 5.4% in 2013-2. Vehicle type concentrations are consistent with 2013-2.

Minimal Residual Risk: Approximately 96% of the 2014-1 leases are of the open-end type, meaning the lessees bear the residual risk. The remaining approximately 4% are closed-end leases, whereby EFM bears the residual risk. Therefore, the trust has limited exposure to closed-end residual risk and is only exposed to wholesale market risk in the event of an obligor default on the open-end portion of the portfolio.

Sufficient Credit Enhancement: Initial hard credit enhancement (CE; 8.90%) has decreased slightly from the 2013-2 transaction (9.00%), and excess spread has also declined. Total proposed CE is sufficient to support Fitch‘s stressed default and loss assumptions, consistent with the expected ratings of F1+sf/AAAsf.

Low Delinquency and Loss History: EFM‘s historical managed portfolio and prior transaction delinquency and loss experience is low, even during periods marked by elevated levels in other consumer and commercial asset classes due to a weak economy.

Quality Origination, Underwriting and Servicing Platform: EFM has demonstrated adequate capabilities as originator, underwriter and servicer, as evidenced by historical delinquency and loss performance of securitized trusts and the managed portfolio.

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