Fitch Affirms Both Classes of Orange Lake Timeshare Trust 2015-A
--Class A at 'Asf'; Outlook Stable;
--Class B at 'BBBsf'; Outlook Stable.
KEY RATING DRIVERS
The rating affirmations reflect performance in line with Fitch's initial expectation, as well as the ability of the transaction's hard 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 conducts sensitivity analysis stressing both a 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.
USE OF THIRD-PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G-10
No third party due diligence was provided or reviewed in relation to this rating action.