OREANDA-NEWS. Fitch Ratings has upgraded TruckLease S.A. Compartment No. 3 class C and D notes, and affirmed the class A and B notes, as follows:

EUR5.3m class A notes: affirmed at 'AAAsf'; Stable Outlook
EUR11.7m class B notes: affirmed at 'AAAsf'; Stable Outlook
EUR11.7m class C notes: upgraded to 'AAAsf' from 'AAsf'; Stable Outlook
EUR7.3m class D notes: upgraded to 'AAsf' from 'Asf'; Stable Outlook

The transaction is a securitisation of finance lease receivables originated in Germany by Albis Mobil Lease GmbH (previously NL Mobil Lease GmbH), its wholly owned subsidiary UTA-Leasing GmbH and Koegel Leasing GmbH. Albis Mobil is ultimately wholly owned by Albis Leasing AG. The lease contracts finance mainly trucks and trailers. The originators regularly sell their contracts to NIBC Bank Deutschland AG (formerly Gallinat-Bank AG).

On 6 November 2015, IKB Leasing Group announced that an agreement had been reached for IKB to acquire the business operations and new business activities of Albis Mobile Lease GmbH and UTA Leasing GmbH. The information has been confirmed by the servicer (NIBC) and TruckLease SA Compartment No 3 is part of the deal. Fitch does not expect any material impact on the transaction from the acquisition.

KEY RATING DRIVERS
The rating actions reflect the transaction's good performance and zero losses to date, and the increasing credit enhancement (CE) for all classes of notes.

Asset Performance
The overall performance has been satisfactory. Defaults have increased to 2.14% from 1.27% since the last review, which is below our expectation for this point in time. Fitch has revised the lifetime default base case to 4.0% from 4.5%. Full recoveries have been achieved on defaulted lease from sale proceeds and cash injections from NIBC Bank Deutschland AG.

Structure and Repayment
The class A notes have already been repaid by 92%, to EUR5.3m at end of October from EUR68.9m at the end of the revolving period. Given the deleveraging, CE continues to improve for all classes of rated notes.

Counterparty Risk
The commingling risk has been addressed and mitigated through transferring collections to the issuer in advance. During the last reporting period the liquidity reserve covered 6x senior expenses, senior fees and interest payments on the class A, B, C and D notes. A back-up servicer has been in place since closing.

Economic Outlook
Germany's 'AAA' rating primarily reflects its strong institutions and diversified and high value-added economy. Fitch expects real GDP will grow above potential in 2015. The key driver of growth is domestic demand, which benefits from high job creation with unemployment rate at the lowest level since at least 1991.

RATING SENSITIVITIES
The ratings for the different classes of notes have been tested to increases in defaults, recoveries or losses of 10% and 25%. The ratings were not sensitive to any of these actions.
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DUE DILIGENCE USAGE
No third party due diligence was provided or reviewed in relation to this rating action.

DATA ADEQUACY
Fitch has checked the consistency and plausibility of the information it has received about the performance of the asset pool and the transaction. There were no findings that were material to this analysis. Fitch has not reviewed the results of any third party assessment of the asset portfolio information or conducted a review of origination files as part of its ongoing monitoring.

Prior to the transaction closing, Fitch conducted a review of a small targeted sample of the origination files and found the information contained in the reviewed files to be adequately consistent with the originator's policies and practices and the other information provided to the agency about the asset portfolio.

Overall Fitch's assessment of the information relied upon for the agency's rating analysis according to its applicable rating methodologies indicates that it is adequately reliable.

SOURCES OF INFORMATION
The information below was used in the analysis.
- Loan-by-loan data downloaded at Edwin (ECB European data warehouse) as at 30 September 2015
- Investor and Portfolio reports provided by Quant FS GmbH as at 30 October 2015.