Moody’s Upgrades GE Capital Transportation Equipment ABS



Moody’s announced it has upgraded two securities and affirmed three securities from GE Equipment Transportation, Series 2014-1. The transactions are backed by transportation equipment loans and leases originated and serviced by GE Capital Corporation (A1, stable outlook).

The upgrades are a result of a lower lifetime cumulative net loss (CNL) expectation as well as the buildup of credit enhancement due to the sequential pay structure, non-declining reserve account and overcollateralization (OC). The CNL expectation was lowered to 0.75% from 1.25%, as the transaction is performing better than originally expected.

Credit enhancement available to the securities includes overcollateralization, non-declining reserve accounts and excess spread. Each month, half of the excess cash available to release to the issuer is applied to build the OC, which provides added support to the securities.

The complete rating actions are as follow:

  • Class A-2 Notes, Affirmed Aaa (sf); previously on Jun 18, 2014 Definitive Rating Assigned Aaa (sf)
  • Class A-3 Notes, Affirmed Aaa (sf); previously on Jun 18, 2014 Definitive Rating Assigned Aaa (sf)
  • Class A-4 Notes, Affirmed Aaa (sf); previously on Jun 18, 2014 Definitive Rating Assigned Aaa (sf)
  • Class B Notes, Upgraded to Aaa (sf); previously on Jun 18, 2014 Definitive Rating Assigned Aa2 (sf)
  • Class C Notes, Upgraded to Aa1 (sf); previously on Jun 18, 2014 Definitive Rating Assigned Aa3 (sf)

To view the full Moody’s report, click here.


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