Fitch Upgrades 3 Classes of GM Financial Automobile Leasing Trust 2014-2

CHICAGO--(BUSINESS WIRE)-- Fitch Ratings has taken the following rating actions on GM Financial Automobile Leasing Trusts 2014-2:

--Class A-3 notes affirmed at 'AAAsf'; Outlook Stable;--Class A-4 notes affirmed at 'AAAsf'; Outlook Stable;--Class B notes upgraded to 'AAAsf' from 'AAsf'; Outlook Stable;--Class C notes upgraded to 'AAsf' from 'Asf'; Outlook revision to Positive from Stable;--Class D notes upgraded to 'Asf' from 'BBBsf'; Outlook revision to Positive from Stable.

KEY RATING DRIVERS

The affirmations of the class A notes and upgrades to the class B, C and D notes reflect increased loss coverage levels since close. Hard credit enhancement (CE) has grown for all classes since close. Credit and residual losses have been within Fitch's initial expectations to date. The Stable Outlooks reflect Fitch's expectation that the notes will remain sufficiently enhanced to cover stressed loss levels consistent with their current rating levels. Further, the Outlook revision to Positive for the class C and D notes reflects the possibility for positive rating actions in the next 12 to 24 months.

Fitch will continue to monitor economic conditions and their impact as well as trust level performance variables and update the ratings accordingly.

RATING SENSITIVITIES

Unanticipated decreases in the value of returned vehicles and/or increases in the frequency of defaults and loss severity on defaulted receivables could produce loss levels higher than the base case. This would likely result in declines of CE and loss coverage levels available to the notes.

Fitch conducted sensitivity analyses at the time of initial rating by increasing the transaction's initial base case RV and credit loss assumptions and examining the rating implications on all classes of issued notes. The increases to the base case losses are applied such that they represent moderate (1.5x) and severe (2.5x) stresses, and are intended to provide an indication of the rating sensitivity of notes to unexpected deterioration of a trust's performance.

DUE DILIGENCE USAGE

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

Additional information is available at www.fitchratings.com.

Applicable CriteriaCounterparty Criteria for Structured Finance and Covered Bonds (pub. 14 May 2014)https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=744158Criteria for Rating U.S. Auto Lease ABS (pub. 24 Mar 2016)https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=879019Criteria for Servicing Continuity Risk in Structured Finance (pub. 17 Dec 2015)https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=875586Global Structured Finance Rating Criteria (pub. 27 Jun 2016)https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=883130

Related ResearchGM Financial Automobile Leasing Trust 2014-2 - Appendixhttps://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=772208

Additional DisclosuresDodd-Frank Rating Information Disclosure Formhttps://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=1008844Solicitation Statushttps://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=1008844Endorsement Policyhttps://www.fitchratings.com/jsp/creditdesk/PolicyRegulation.faces?context=2&detail=31

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

View source version on businesswire.com: http://www.businesswire.com/news/home/20160713006498/en/

Fitch Ratings
Surveillance Analyst
Andrew Tinari
Associate Director
+1-312-368-3127
Fitch Ratings, Inc.
70 W. Madison Street
Chicago, IL 60602
or
Committee Chairperson
Du Trieu
Senior Director
+1-312-368-2091
or
Media Relations
Sandro Scenga, New York, +1 212-908-0278
[email protected]

Source: Fitch Ratings

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