OREANDA-NEWS. Fitch Ratings assigns the following ratings to the GreatAmerica Leasing Receivables Funding, L.L.C., Series 2016-1 notes:

--$105,951,000 class A-1 'F1+sf';
--$111,200,000 class A-2 'AAAsf'; Outlook Stable;
--$115,925,000 class A-3 'AAAsf'; Outlook Stable;
--$90,249,000 class A-4 'AAAsf'; Outlook Stable;
--$18,135,000 class B 'AAsf'; Outlook Stable;
--$13,124,000 class C 'Asf'; Outlook Stable.

Fitch's stress and rating sensitivity analysis are discussed in the presale report titled GreatAmerica Leasing Receivables Funding, L.L.C., Series 2016-1', dated Feb. 4, 2016, which is available on Fitch's website. The presale report details how Fitch addresses the key rating drivers summarized below.

KEY RATING DRIVERS
High Concentration of Copiers/Printers: 67.0% of 2016-1 consists of office imaging (copier/printers), which is down from the prior five transactions that included 67%-76% of this collateral type. Despite the high concentration, copiers/printers have historically performed better than other equipment types within GreatAmerica's portfolio.

Improving Asset Performance: GreatAmerica's managed static pool data have experienced improved loss performance for more recent vintages of the managed portfolio. All GreatAmerica securitizations have experienced cumulative net losses (CNLs) within Fitch's initial expectations for each transaction.

Sufficient Credit Enhancement (CE): All classes benefit from a cash reserve account and overcollateralization (OC). Total initial hard CE for the class A, B, and C notes is 12.30%, 8.50%, and 5.75%, respectively. These levels are down from 2015-1 and 2014-1. Additionally, all classes benefit from 6.17% in booked residuals. The structure is able to support Fitch's base case CNL of 2.55%.

Quality of Origination, Underwriting, and Servicing: GreatAmerica has demonstrated adequate abilities as originator, underwriter, and servicer as evidenced by historical delinquency and loss performance of securitized trusts and the managed portfolio.

Integrity of Legal Structure: The legal structure of the transaction should provide that a bankruptcy of GreatAmerica would not impair the timeliness of payments on the securities.

RATING SENSITIVITIES
Unanticipated increases in the frequency of defaults and loss severity on defaulted receivables could produce loss levels higher than the base case and could result in potential rating actions on the notes. Fitch evaluated the sensitivity of the ratings to increased losses over the life of the transaction. Fitch's analysis found that the notes display limited sensitivity to increased defaults and losses, showing limited impact on the rating of the notes under Fitch's moderate (0% residual value [RV]) scenario. The notes could experience downgrades of up to two rating categories under Fitch's severe (1.5x base case loss and 0% RV) scenario.

DUE DILIGENCE USAGE
Additionally, Fitch was provided with third-party due diligence information from KPMGLLP. The third-party due diligence focused on comparing or recalculating certain information with respect to 150 receivables. Fitch considered this information in its analysis and the findings did not have an impact on our analysis/conclusions. A copy of the ASB Due Diligence Form-15E received by Fitch in connection with this transaction may be obtained through the link contained on the bottom of this rating action commentary (RAC).

Key Rating Drivers and Rating Sensitivities are further described in the presale report dated Feb. 4, 2016. Fitch's analysis of the Representations and Warranties (R&W) of this transaction can be found in 'GreatAmerica Leasing Receivables Funding, L.L.C., Series 2016-1- Appendix'. These R&Ws 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.