OREANDA-NEWS. Fitch Ratings has taken the following rating actions on CNH Equipment Trusts 2014-A and 2015-A:

CNH 2014-A

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

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

--Class B upgraded to 'AAAsf' from 'AAsf'; Outlook revised to Stable from Positive.

CNH 2015-A

--Class A-2 affirmed at 'AAAsf'; Outlook Stable;

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

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

--Class B upgraded to 'AAsf' from 'A+sf'; Outlook Positive.


The affirmations of the class A notes in both transactions reflect loss coverage levels consistent with the current ratings. The upgrades of the class B notes are largely attributable to growing hard credit enhancement (CE) levels since close and cumulative net losses (CNL) tracking within Fitch's expectations. The Stable Outlook for the outstanding class A notes and 2014-A's B note reflects Fitch's expectation for loss coverage and credit enhancement to continue to improve as the transaction amortizes. Maintaining the Positive Outlook for the class B note of 2015-A reflects the possibility for further positive rating action in the next 12 to 18 months.

As of the September 2016 reporting period, CNL for 2014-A and 2015-A totalled 49 basis points (bps) and 38bps, respectively. Loss performance for both transactions is performing below Fitch's initial base case loss proxy.


Unanticipated increases in the frequency of defaults and loss severity could produce loss levels higher than the current projected base case loss proxy and impact available loss coverage and multiples levels for the transaction. Lower loss 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 a 1.5x and 2.5x increase of Fitch's base case loss expectations with rising loss coverage and multiple levels. As such, a material deterioration in performance would have to occur within the asset pool to have potential negative impact on the outstanding ratings.


Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action.