Fitch Ratings said it expects to assign the following ratings to the GreatAmerica Leasing Receivables Funding, Series 2015-1 notes:

• $108,600,000 class A-1 ‘F1+sf’;
• $116,060,000 class A-2 ‘AAAsf’; Outlook Stable;
• $119,670,000 class A-3 ‘AAAsf’; Outlook Stable;
• $77,531,000 class A-4 ‘AAAsf’; Outlook Stable;
• $17,808,000 class B ‘AAsf’; Outlook Stable;
• $13,856,000 class C ‘Asf’; Outlook Stable.

Fitch notes the following key rating drivers:

Fitch said 67.4% of 2015-1 consists of copiers/printers (also known as office imaging equipment), which is down from the prior four transactions, which included 69%-76% of this collateral type. Despite the high concentration, copiers/printers have historically performed better than other equipment types within GreatAmerica’s portfolio.

GreatAmerica’s managed static pool data have experienced improved loss performance for more recent vintages of the managed portfolio. All GreatAmerica securitizations have experienced cumulative net losses (CNLs) within Fitch’s initial expectations.

All classes benefit from a cash reserve account and overcollateralization (OC). Total initial hard credit enhancement (CE) for the class A, B, and C notes is 12.90%, 9.16% and 6.25%, respectively. These levels are down from 2014-1 and 2013-1. Additionally, all classes benefit from 6.26% in booked residuals. The structure is able to support Fitch’s base case CNL of 2.65%.

GreatAmerica has demonstrated adequate abilities as originator, underwriter, and servicer as evidenced by historical delinquency and loss performance of securitized trusts and the managed portfolio.

The legal structure of the transaction should provide that a bankruptcy of GreatAmerica would not impair the timeliness of payments on the securities.

To view the full Fitch news release (includes commentary on “rating sensitivities”), click here.