Fitch Affirms BMW Vehicle Lease Trust 2015-2
KEY RATING DRIVERS
The rating affirmations of the class A notes reflect loss coverage levels consistent with their current ratings. Hard credit enhancement (CE) has grown since close, credit losses have been within Fitch's initial expectations, and residual performance has recorded cumulative gains. The Stable Outlooks reflect Fitch's expectation that the notes will remain sufficiently enhanced to cover stressed credit and residual loss levels consistent with an 'AAAsf' rating.
Unanticipated increases in the frequency of defaults or deterioration in vehicle values 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.
To date, the transaction has exhibited strong credit and residual performance, inside Fitch's initial expectations with rising loss coverage. Due to the growing CE levels and increased loss coverage afforded to the notes, a substantial deterioration in used vehicle values would have to occur to have a negative impact on the updated ratings.
USE OF THIRD-PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G-10
Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action.
Fitch has affirmed the following ratings:
--Class A-2a notes at 'AAAsf'; Outlook Stable;
--Class A-2b notes at 'AAAsf'; Outlook Stable;
--Class A-3 notes at 'AAAsf'; Outlook Stable;
--Class A-4 notes at 'AAAsf'; Outlook Stable.