OREANDA-NEWS. Fitch Ratings takes various rating actions on GreatAmerica Leasing Receivables 2012-1 and 2013-1. A full list of rating actions follows at the end of this ratings action commentary.

The upgrade of the class C notes in the 2013-1 transaction and affirmation of all other outstanding classes in both transactions reflects net loss coverage consistent with 'AAAsf' and growth in hard credit enhancement (CE) since close. The Stable Outlook for all classes reflects Fitch's expectation for loss coverage and CE to continue to improve as the transactions amortize. As of the September 2015 reporting period, cumulative net losses totaled 79 basis points (bps) and 64 bps for 2012-1 and 2013-1, respectively. Both transactions' are extrapolating below Fitch's initial base case loss proxies.

Unanticipated increases in the frequency of defaults and loss severity could produce loss levels higher than the current projected base case loss proxies which would impact available loss coverage. 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 transactions, the notes were found to have limited sensitivity to 1.5x and 2.5x Fitch's base case loss expectations.

To date, the transactions have exhibited strong performance with losses within Fitch's initial expectations, resulting in rising CE and loss coverage levels. As such, continued strong performance for these transactions would result in stable to positive rating actions. Conversely, a material deterioration in performance would have to occur within the asset pool to have potential negative impact on the outstanding ratings.

Initial key rating drivers and rating sensitivities are further described in the new issue reports for 2012-1 and 2013-1 published March 4, 2012 and Feb. 4, 2013, respectively.

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

Fitch's analysis of the Representations and Warranties (R&W) of the 2012-1 and 2013-1 transactions can be found in 'GreatAmerica Leasing Receivables Funding, L.L.C Series 2012-1 - Appendix' and 'GreatAmerica Leasing Receivables Funding, L.L.C Series 2013-1 - Appendix'. 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 taken the following rating actions on GreatAmerica Leasing Receivables 2012-1 and 2013-1:

--Class A-4 affirmed at 'AAAsf'; Outlook Stable;
--Class B affirmed at 'AAAsf'; Outlook Stable;
--Class C affirmed at 'AAAsf'; Outlook Stable.

--Class A-3 affirmed at 'AAAsf'; Outlook Stable;
--Class A-4 affirmed at 'AAAsf'; Outlook Stable;
--Class B affirmed at 'AAAsf'; Outlook Stable;
--Class C upgraded to 'AAAsf' from 'AAsf'; Outlook revised to Stable from Positive.