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Fitch Affirms Macquarie Equipment Finance Trust 2011-A

February 3, 2014

NEW YORK --(BUSINESS WIRE)-- Fitch Ratings Affirms Macquarie Equipment Finance Trust 2011-A (MEFT 2011-A) class A-3 notes at 'AAAsf', Outlook Stable. KEY RATING DRIVERS Fitch's analysis of MEFT 2011-A incorporates the derivation of net loss expectations utilizing its proprietary Portfolio Credit Model (PCM) as the collateral pool contains high obligor concentrations, and loss experience on MEFT's managed portfolio is limited. This approach is detailed in Fitch's criteria 'Global Rating Criteria for Corporate CDOs,' dated Aug. 8, 2013 . All other aspects of this review are consistent with 'Criteria for Rating U.S. Equipment Lease and Loan ABS,' dated Dec. 19, 2013 . The affirmation of the class A-3 notes at 'AAAsf' reflects the credit enhancement (CE) levels available to the class which provides for net loss coverage levels commensurate with the ratings. Performance to date has been within Fitch's initial expectations as the trust has realized only minimal losses. Fitch will continue to closely monitor this transaction and may take rating actions in the event of changes in performance and credit enhancement measures. RATING SENSITIVITY Unanticipated increases in the frequency of defaults, or decreases in recovery rates, could produce loss levels higher than initial expectation and could result in potential rating actions on the notes. In its initial review, Fitch evaluated the sensitivity of ratings assigned to unrated obligors in order to increased default levels. The transaction did show sensitivity to higher default rates, which Fitch stressed by assuming all unrated obligors carry a 'CCC' Issuer Default Rating. However, a material increase in obligor concentrations may impact future sensitivities for this transaction. Initial Key Rating Drivers and Rating Sensitivities are further described in the new issue report published Feb 14, 2011 , available at www.fitchratings.com . Additional information is available at ' www.fitchratings.com ' Applicable Criteria and Related Research : --'Criteria for Rating U.S. Equipment Lease and Loan ABS' dated December 19, 2013 ; --'Global Rating Criteria for Corporate CDOs,' dated August 8, 2013 --'Global Structured Finance Rating Criteria' dated May 24, 2013 --'Macquarie Equipment Finance Trust 2011-A' dated February 14, 2011 Applicable Criteria and Related Research : Macquarie Equipment Funding Trust 2011-A http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=603905 Global Structured Finance Rating Criteria http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=708661 Global Rating Criteria for Corporate CDOs http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=715492 Criteria for Rating U.S. Equipment Lease and Loan ABS http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=726362 Additional Disclosure Solicitation Status http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=819250 ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS . IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE ' WWW.FITCHRATINGS.COM '. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE. Fitch Ratings Primary Analyst: Thomas Kaiser , CPA, +1-312-368-3338 Fitch Ratings, Inc. 70 W Madison St. Chicago, IL 60602 or Secondary Analyst: Du Trieu , +1-312-368-2091 Senior Director or Committee Chairperson: Bradley Sohl , +1-212-908-1792 Senior Director or Media Relations: Sandro Scenga , New York , +1 212-908-0278 sandro.scenga@fitchratings.com Source: Fitch Ratings


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