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Fitch Rates Enterprise Fleet Financing LLC, Series 2014-2

August 15, 2014

CHICAGO--(BUSINESS WIRE)-- Fitch Ratings has assigned the following ratings and Rating Outlooks to the Enterprise Fleet Financing LLC, series 2014-2 notes:

--$237,000,000 class A-1 notes 'F1+sf';

--$618,000,000 class A-2 notes 'AAAsf'; Outlook Stable;

--$95,200,000 class A-3 notes 'AAAsf'; Outlook Stable.

Key Rating Drivers

Strong Credit Quality Obligors: Although the vast majority of the collateral is not rated by any Nationally Recognized Statistical Rating Organization (NRSRO), EFM's portfolio has experienced minimal delinquencies and net losses. In its analysis, Fitch assumed a 'B' rating for unrated obligors.

Strong Portfolio Diversification: Obligor and industry concentrations are minimal. The single most concentrated obligor represents 0.63% of the pool, while the top industry - oil and gas - represents only approximately 11.6%. However, consistent with prior transactions, there is a large concentration of light and medium duty trucks that make up approximately 81% of the pool.

Low Delinquency and Loss History: EFM's historical managed portfolio and prior transaction delinquency and loss experience is low, even during periods marked by elevated levels in other consumer and commercial asset classes due to a weak economy.

Sufficient Credit Enhancement (CE): Initial hard CE has decreased 27 basis points (bps) from the 2014-1 transaction. Nonetheless, total proposed CE is sufficient to support Fitch's 'AAAsf' stressed loss assumption of 11.4%.

Minimal Residual Risk: Approximately 97% of the 2014-2 leases are open-end, meaning the lessees bear the residual risk. The remaining 3% are closed-end leases, under which the trust will bear the wholesale market risk.

Quality Origination, Underwriting and Servicing Platform: EFM has demonstrated adequate capabilities as originator, underwriter and servicer, as evidenced by historical delinquency and loss performance of securitized trusts and the managed portfolio.

RATING SENSITIVITIES

Unanticipated increases in the frequency of defaults could produce default levels higher than the projected base-case default proxy and impact available default coverage and multiples levels. Lower default coverage could impact ratings and Rating Outlooks, depending on the extent of the decline in coverage. In Fitch's initial review of the transaction, the notes were found to have limited sensitivity to changes in obligor credit profiles and recovery rates associated with the high concentration of truck collateral in the pool. Further details can be found in the presale report.

Key Rating Drivers and Rating Sensitivities are further detailed in the accompanying presale report, available at 'www.fitchratings.com' or by clicking on the above link.

Fitch's analysis of the Representations and Warranties (R&W) of this transaction can be found in Enterprise Fleet Financing, L.L.C. Series 2014-2 - 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:

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

--'Global Rating Criteria for Corporate CDOs' (Jul. 25, 2014);

--'Criteria for Rating U.S. Auto Lease ABS' (April 24, 2014);

-'Representations, Warranties, and Enforcement Mechanisms in Global Structured Finance Transactions' (April 17, 2012);

--'Enterprise Fleet Financing, LLC Series 2014-2' dated July 31, 2014;

--'Enterprise Fleet Financing, LLC Series 2014-2 -- Appendix' dated July 31, 2014.

Applicable Criteria and Related Research:

Enterprise Fleet Financing, LLC Series 2014-2 (US ABS)

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=753597

Enterprise Fleet Financing, LLC Series 2014-2 -- Appendix

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=754027

Representations, Warranties, and Enforcement Mechanisms in Global Structured Finance Transactions

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=676496

Criteria for Rating U.S. Auto Lease ABS

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=746763

Global Rating Criteria for Corporate CDOs

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=753057

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=754389

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=852334

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, +1-312-368-3338

Associate Director

Fitch Ratings, Inc.

70 West Madison Street,

Chicago, IL 60602

or

Secondary Analyst

Andrew Tinari, +1-312-368-3127

Analyst

or

Committee Chairperson

Hylton Heard, +1-212-908-0214

Senior Director

or

Media Relations

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

sandro.scenga@fitchratings.com

Source: Fitch Ratings


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