Fitch Affirms Porsche Innovative Lease Owner Trusts 2013-1 and 2014-1; Outlooks Remain Stable
KEY RATING DRIVERS
The ratings affirmations for the Class A notes of both transactions reflect loss coverage levels consistent with their current ratings. Hard credit enhancement (CE) has grown for all class notes since close and residual performance for both transactions has produced 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.
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 these transactions, please see their New Issue reports titled "Porsche Innovative Lease Owner Trust 2013-1 (US ABS)," dated October 28, 2013, and "Porsche Innovative Lease Owner Trust 2014-1 (US ABS), dated Sept. 11, 2014.
Fitch's analysis of the Representations and Warranties (R&W) of these transactions can be found in "Porsche Innovative Lease Owner Trust 2013-1 - Appendix" and "Porsche Innovative Lease Owner Trust 2014-1 - 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:
Porsche Innovative Lease Owner Trust 2013-1
--Class A-3 notes at 'AAAsf; Outlook Stable
--Class A-4 notes at 'AAAsf; Outlook Stable
Porsche Innovative Lease Owner Trust 2014-1
--Class A-2 notes at 'AAAsf'; Outlook Stable
--Class A-3 notes at 'AAAsf'; Outlook Stable
--Class A-4 notes at 'AAAsf'; Outlook Stable