Fitch Affirms GM Financial Automobile Leasing Trust 2014-2
KEY RATING DRIVERS
The affirmations to all outstanding classes reflect loss coverage levels consistent with the current ratings. Hard credit enhancement (CE) has grown for all classes since close, and residual performance is consistent with Fitch's initial expectations. The Outlook Stable designation for the class A, B, C, and D notes reflect Fitch's expectation for loss coverage and credit enhancement to continue to improve as the transaction amortizes.
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 credit enhancement 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.
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 Sept. 8, 2014. Fitch's analysis of the Representations and Warranties (R&W) of this transaction can be found in 'GM Financial Automobile Leasing Trust 2014-2- 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 June 12, 2015.
Fitch has affirmed the following ratings:
GM Financial Automobile Leasing Trust 2014-2
--Class A-2 at 'AAAsf'; Outlook Stable;
--Class A-3 at 'AAAsf'; Outlook Stable;
--Class A-4 at 'AAAsf'; Outlook Stable;
--Class B at 'AAsf'; Outlook Stable;
--Class C at 'Asf'; Outlook Stable;
--Class D at 'BBBsf'; Outlook Stable.