Fitch Ratings expects to rate Volvo Financial Equipment, Series 2015-1 as follows:

• $196,000,000 class A-1 notes ‘F1+sf’;
• $240,000,000 class A-2 notes ‘AAAsf’; Outlook Stable;
• $262,000,000 class A-3 notes ‘AAAsf’; Outlook Stable;
• $72,770,000 class A-4 notes ‘AAAsf’; Outlook Stable;
• $18,950,000 class B notes ‘AAsf’; Outlook Stable;
• $26,530,000 class C notes ‘Asf’; Outlook Stable;
• $26,122,168 certificates ‘NR’.

Fitch defined the following key ratings drivers:

The 2015-1 pool consists of 82.91% trucking collateral and 17.09% of construction (CO) collateral. Of the pool, 12.88% is composed of dealer term loans (DTLs), which have not experienced credit defaults on the managed portfolio or prior securitizations.

VFS’ managed transportation portfolio experienced asset deterioration from 2007-2009. However, performance between 2010 and 2014 exhibited improvement in delinquencies and losses.

The prior transactions have been performing well. Forecasts of cumulative net losses (CNL) on the outstanding securitizations are extrapolating below 1.00%.

VFS has demonstrated sufficient 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 the trust would not impair the timeliness of payments on the securities.

To view the full Fitch report, click here.