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Fitch Rates Mercedes-Benz Auto Lease Trust 2013-A



  Fitch Rates Mercedes-Benz Auto Lease Trust 2013-A

Business Wire

NEW YORK -- April 24, 2013

Fitch Ratings has assigned the following ratings and Rating Outlooks to the
notes issued by Mercedes-Benz Auto Lease Trust (MBALT) 2013-A:

--$478,850,000 class A-1 asset-backed notes 'F1+sf';

--$796,000,000 class A-2 asset-backed notes 'AAAsf'; Outlook Stable;

--$590,000,000 class A-3 asset-backed notes 'AAAsf'; Outlook Stable;

--$ 154,350,000 class A-4 asset-backed notes 'AAAsf'; Outlook Stable.

KEY RATING DRIVERS

Strong Collateral Quality: The 2013-A pool is consistent with that of 2012-A,
with a stronger WA FICO score of 780, nine months seasoning, a
well-diversified residual value (RV) maturity schedule and lower concentration
in longer term leases.

Adequate Credit Enhancement (CE) Structure: Initial CE totals 16.35%, an
increase of 10 bps from 2012-A, growing to 19.25% (75 bps higher than in
2012-A) of the initial securitization value. Initial excess spread is expected
to be 4.71%, in line with 2012-A (4.61%). Loss coverage remains adequate to
support Fitch's 'AAAsf' stressed assumptions.

Improved Loss Performance: Credit and residual losses on the Mercedes-Benz
Financial Services USA LLC (MBFS) portfolio declined significantly through
2012 from the elevated levels of 2008 and 2009. This is a result of strong
obligor credit quality and solid used vehicle values, leading to higher
recovery rates and residual realization.

Stable Corporate Health: Fitch rates Daimler AG, the parent of MBFS, 'A-/F2'
with a Stable Outlook. MBFS has good capabilities as an originator,
underwriter and servicer, as evidenced by historical performance of its
managed portfolio and prior securitizations.

Unstable Macroeconomic Conditions: While the wholesale vehicle market in the
U.S. is currently strong, Fitch remains concerned regarding potential
macroeconomic deterioration, which could lead to increased credit and residual
loss levels. Potential increases in gas prices in the near term may harm the
residual values of certain vehicles such as less fuel efficient models, namely
SUVs.

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

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 and could result in potential
rating actions on the notes. Fitch evaluated the sensitivity of the ratings
assigned to MBALT 2013-A to increased credit and residual losses over the life
of the transaction. Fitch's analysis found that the transaction displays
relatively little sensitivity to increased defaults and credit losses, showing
downgrades of only one rating category even under Fitch's severe (2.5 times
base case loss) scenario. The transaction shows significantly more sensitivity
to residual loss volatility, though even under Fitch's severe scenario, the
class A notes would be expected to retain an investment grade rating.

Key Rating Drivers and Rating Sensitivities are further described in the
accompanying presale report.

The presale report is available to all investors on Fitch's website at
'www.fitchratings.com'. For more information about Fitch's comprehensive
subscription service FitchResearch, which includes all presale reports,
surveillance, and credit reports on more than 20 asset classes, contact
product sales at +1-212-908-0800 or at 'webmaster@fitchratings.com'.

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research:

--'Criteria for Rating U.S. Auto Lease ABS' (May 14, 2012);

--'Global Structured Finance Rating Criteria' (June 6, 2012).

Applicable Criteria and Related Research

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=679923

Criteria for Rating U.S. Auto Lease ABS

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=678137

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=789463

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.

Contact:

Fitch Ratings
Primary Analyst
Hylton Heard
Senior Director
+1-212-908-0214
Fitch Ratings, Inc.
One State Street Plaza
New York, NY 10004
or
Secondary Analyst
Sean Egeran, CFA
Director
+1-212-908-0621
or
Committee Chairperson
Bradley Sohl
Senior Director
+1-312-368-3127
or
Media Relations:
Sandro Scenga, New York, +1 212-908-0278
Email: sandro.scenga@fitchratings.com
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