Fitch Ratings has affirmed both classes of notes issued by Orange Lake Timeshare Trust 2012-A as follows:
--Class A notes at 'Asf'; Outlook Stable;
--Class B notes at 'BBBsf'; Outlook Stable.
KEY RATING DRIVERS:
The rating affirmations reflect the ability of the transaction's credit enhancement (CE) to provide loss coverage consistent with the current ratings. The Stable Outlook reflects Fitch's expectation that the notes will remain sufficiently enhanced to cover stressed loss levels consistent with the current ratings for the next 12-18 months.
Fitch will continue to monitor economic conditions and their impact as they relate to timeshare asset-backed securities and the trust level performance variables and update the ratings accordingly.
RATING SENSITIVITIES
Unanticipated increases in the frequency of defaults could produce loss levels higher than the current expectations and impact available loss coverage. Lower loss coverage could affect ratings and Rating Outlooks, depending on the extent of the decline in coverage.
To date, the transaction has exhibited no losses (due to repurchase of defaulted loans) and default performance is consistent with Fitch's initial expectations. Default coverage and multiple levels are consistent with the current ratings. A material deterioration in performance would have to occur within the asset pool to have a potential negative impact on the outstanding ratings.
Fitch's stress and rating sensitivity analyses are discussed in the presale report titled 'Orange Lake Timeshare Trust (US ABS)', dated Feb. 23, 2012, which is available on Fitch's web site.
Fitch's analysis of the Representations and Warranties (R&W) can be found in 'Orange Lake Timeshare Trust 2012-A - 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 Oct. 31, 2014.
Additional information is available at 'www.fitchratings.com'.
The information used to assess these ratings was sourced from the issuer, periodic trustee reports, note valuation reports, and the public domain.
Applicable Criteria and Related Research:
--Criteria for Rating U.S. Timeshare Loan ABS dated June 9, 2014;
--Global Structured Finance Rating Criteria dated August 4, 2014;
--Representations, Warranties, and Enforcement Mechanisms in Global Structured Finance Transactions dated October 31, 2014;
--Orange Lake Timeshare Trust 2012-A dated Feb. 23, 2012;
--Orange Lake Timeshare Trust 2012-A - Appendix dated Feb. 23, 2012.
Applicable Criteria and Related Research:
Orange Lake Timeshare Trust 2012-A (U.S. ABS)
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=672452
Orange Lake Timeshare Trust 2012-A -- Appendix
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=672549
Representations, Warranties and Enforcement Mechanisms in Global Structured Finance Transactions
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=799248
Criteria for Rating U.S. Timeshare Loan ABS
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=749780
Global Structured Finance Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=754389
Additional Disclosure
Solicitation Status
http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=970075
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