Fitch Ratings has affirmed and revised the outlook on the following classes of GreatAmerica Leasing Receivable Funding 2014-1 as indicated:

• Class A-2 at ‘AAAsf’; Outlook Stable;
• Class A-3 at ‘AAAsf’; Outlook Stable;
• Class A-4 at ‘AAAsf’; Outlook Stable;
• Class B at ‘AAsf’; Outlook to Positive from Stable;
• Class C at ‘Asf’; Outlook to Positive from Stable.

Fitch said the affirmations to all outstanding classes reflect credit enhancement (CE) levels commensurate with their respective ratings. The transaction has experienced solid performance to date with 0.41% in cumulative net losses as of the January 2015 reporting period. These levels are tracking below Fitch’s initial base case proxy of 2.75%.

Fitch noted that the positive outlook for the class B and C notes reflects the possibility for positive rating actions in the next 12 to 18 months if current performance trends continue. All other classes have a stable outlook reflecting Fitch’s expectation of stable performance and growing CE levels. Fitch will continue to monitor this transaction and may take additional rating actions in the event of changes in performance and credit enhancement measures.

To date, the transaction has exhibited solid performance with losses within Fitch’s initial expectations, resulting in rising CE and loss coverage levels. As such, continued strong performance for this transaction would result in stable to positive rating actions. Conversely, a material deterioration in performance would have to occur within the asset pool to have potential negative impact on the outstanding ratings.

In Fitch’s initial review of the transaction, the notes were found to have limited sensitivity to 1.5x and 2.5x Fitch’s base case loss expectations.

To view the full Fitch Ratings news release, click here.