–Class A at ‘Asf'; Outlook Stable;
–Class B at ‘BBBsf'; Outlook Stable.
KEY RATING DRIVERS
The rating affirmations reflect the ability of the transaction’s credit enhancement (CE) to provide loss coverage consistent with the current ratings. The Stable Outlook designation for both classes of notes reflect Fitch’s expectation that the notes will remain sufficiently enhanced to cover stressed loss levels consistent with the current ratings for the next 12 – 18 months.
Fitch will continue to monitor economic conditions and their impact as they relate to timeshare asset-backed securities and the trust level performance variables and update the ratings accordingly.
Unanticipated increases in the frequency of defaults could produce loss levels higher than the current expectations and impact available loss coverage. Lower loss coverage could impact ratings and Rating Outlooks, depending on the extent of the decline in coverage.
At initial review, Fitch conducted a sensitivity analysis stressing both the transaction’s initial base case CGD and prepayment assumptions by 1.5x and 2.0x and examining the rating implications on all classes of issued notes. The 1.5x and 2.0x increases of the base case CGD and prepayment assumptions represent moderate and severe stresses, respectively, and are intended to provide an indication of the rating sensitivity of notes to unexpected deterioration of a trust’s performance.
DUE DILIGENCE USAGE
No third party due diligence was provided or reviewed in relation to this rating action.
Additional information is available at ‘www.fitchratings.com’.
Counterparty Criteria for Structured Finance and Covered Bonds (pub. 14 May 2014)
Criteria for Rating U.S. Timeshare Loan ABS (pub. 03 Jun 2015)
Criteria for Servicing Continuity Risk in Structured Finance (pub. 17 Dec 2015)
Global Structured Finance Rating Criteria (pub. 06 Jul 2015)
Orange Lake Timeshare Trust 2014-A — Appendix
Dodd-Frank Rating Information Disclosure Form
PRESS RELEASE SOURCE: Fitch Ratings
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