OREANDA-NEWS. June 04, 2015. Fitch Ratings has affirmed both classes of Hilton Grand Vacations Trust 2014-A at their current ratings. A full list of rating actions follows at the end of this ratings action commentary.

KEY RATING DRIVERS

The affirmations reflect the ability of the transaction's credit enhancement to provide loss coverage consistent with the current rating levels. Cumulative gross defaults have been within Fitch's base case expectation to date.

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.

RATING SENSITIVITIES

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.

To date, the transaction has exhibited performance within Fitch's initial expectations with rising loss coverage. Due to the growth in credit enhancement levels and increased loss coverage afforded to the notes, a substantial increase in defaults would have to occur to have a negative impact on the updated ratings.

DUE DILIGENCE USAGE
No third party due diligence was provided or reviewed in relation to this rating action.

For Fitch's initial Key Rating Drivers, Rating Sensitivities and the full detail analysis for this transaction, please see the New Issue report dated June 6, 2014. Fitch's analysis of the Representations and Warranties (R&W) of this transaction can be found in 'Hilton Grand Vacations Trust 2014-A- 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 March 26, 2015.}

Fitch has affirmed the following ratings:
--Class A at 'AAsf'; Outlook Stable;
--Class B at 'Asf'; Outlook Stable.