Amend: Fitch: U.S. Equipment Lease ABS Experienced Higher Delinquencies in 2nd Half of 2007.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- (This is an amended version of a press release issued earlier today and contains revisions to Fitch's Outlook for equipment lease ABS (Automatic Backup System) See backup program. in the second paragraph). Following historical trends, U.S. equipment lease delinquency rates increased slightly during the second half of 2007. Total delinquencies increased slightly across both the small/mid-ticket and large ticket portfolios, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Fitch Ratings Fitch Ratings An international rating agency for financial institutions, insurance companies, and corporate, sovereign, and municipal debt. Fitch Ratings has headquarters in New York and London and is wholly owned by FIMALAC of Paris. in the latest edition of 'The ABS Equipment Expo.' As of the Dec. 31, 2007 reporting period, 60+ day delinquencies for Fitch's Equipment ABS Delinquency Index increased to 0.79% with an annual average of 0.68% versus 0.58% at year-end 2006 and 0.50% annual average. The slight increase in 60+ day delinquencies follows similar seasonal patterns witnessed in prior years, whereby first quarter delinquencies reach a peak, but subsequently decline during the second and early third quarters and increases during the remainder of the year. Fitch expects 60+ day delinquencies to deviate from prior seasonal trends, due to concerns related to the current US economy. As a result, Fitch expects both portfolios to experience slight portfolio deterioration de·te·ri·o·ra·tion n. The process or condition of becoming worse. , resulting in increases in delinquencies and losses during the first half of 2008. However, the transactions rated by Fitch continue to perform within expected ranges, resulting in sufficient credit enhancement Credit Enhancement A method whereby a company attempts to improve its debt or credit worthiness. Notes: Credit enhancements take many different forms. An example of a credit enhancement would be conversion rights added on to a debt instrument in order to lower the issuing to cover current ratings. Both the small/mid-ticket and large ticket portfolios experienced increasing delinquency trends. The small/mid-ticket portfolio 60+ day delinquencies totaled 1.03% at year-end 2007 versus 0.78% in June 2007 and 0.95% at year-end 2006. Similar performance was seen on the large ticket portfolio, with 0.65% 60+ day delinquencies at year-end 2007 compared to 0.52% in June 2007 and 0.37% at year end 2006. Total equipment ABS issuance volume for 2007 was $6.1 billion, which is a decline of 28% and 37% from 2006 and 2007 issuance volume, respectively. The 'The ABS Equipment Expo' is available on the Fitch Ratings web site at www.fitchratings.com. Fitch's rating definitions and the terms of use Terms of Use are rules set up by the owner of an intellectual property or service to govern how they may be legally used. In many cases, terms of service are used as a contractual agreement between a company and users of a service they provide. of such ratings are available on the agency's public site, 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 Policies and Procedures are a set of documents that describe an organization's policies for operation and the procedures necessary to fulfill the policies. They are often initiated because of some external requirement, such as environmental compliance or other governmental are also available from the 'Code of Conduct' section of this site. |
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