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Fitch Affirms MMAF Equipment Finance LLC Series 2012-A

May 20, 2014

NEW YORK--(BUSINESS WIRE)-- Fitch Ratings has affirmed MMAF Equipment Finance LLC Series 2012-A as follows:

--Class A-3 at 'AAAsf', Outlook Stable;

--Class A-4 at 'AAAsf', Outlook Stable;

--Class A-5 at 'AAAsf', Outlook Stable.

KEY RATING DRIVERS

Fitch's analysis of MMAF 2012-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 MMAF'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 class A notes reflect credit support available which is consistent with the current ratings. In addition, collateral performance has been strong to date as the trust has had limited delinquencies and zero losses. Fitch will continue to monitor this transaction and may take additional 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 the base case and could result in potential rating actions on the notes. In its initial review, Fitch evaluated the sensitivity of ratings assigned to unrated obligors to increased default levels. The transaction did show significantly more sensitivity to higher default rates, which Fitch stressed by assuming all unrated obligors carry a 'CCC' Issuer Default Rating. As a result of increased credit enhancement, the transaction currently shows minimal sensitivity to the same stress.

Additionally, at close, Fitch's analysis found that the transaction displays relatively modest sensitivity to different recovery rates. Initial key rating drivers and rating sensitivities are further described in the new issue reports published on June 11, 2012.

Fitch's analysis of the Representations and Warranties (R&W) of these transactions can be found in 'MMAF Equipment Finance LLC Series 2012-A - Appendix'. These R&W are compared to those of typical R&W for the asset class as detailed in the special report 'Representations, Warranties, and Enforcement Mechanisms in Global Structured Finance Transactions' dated April 17, 2012.

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research:

--'Criteria for Rating U.S. Equipment Lease and Loan ABS' (Dec. 19, 2013);

--'Global Rating Criteria for Corporate CDOs,' (Aug. 8, 2013);

--'Global Structured Finance Rating Criteria' (May 20, 2014).

Applicable Criteria and Related Research:

Criteria for Rating U.S. Equipment Lease and Loan ABS

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=726362

Global Rating Criteria for Corporate CDOs

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=715492

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=748821

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=830992

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

Associate Director

Fitch Ratings, Inc.

70 W. Madison Street

Chicago, IL 60602

or

Secondary Analyst:

Hylton Heard, +1-212-908-0214

Senior Director

or

Committee Chairperson:

Bradley Sohl, +1-212-908-0792

Senior Director

or

Media Relations:

Sandro Scenga, New York, +1-212-908-0278

sandro.scenga@fitchratings.com

Source: Fitch Ratings


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