Fitch Affirms LEAF II Receivables Funding LLC Series 2007-1.CHICAGO -- 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. has taken the following rating actions on LEAF II Receivables Funding LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control Series 2007-1 (LEAF 2007-1): --Class A-3 notes affirmed at 'A'. The Class A-3 notes benefit from increasing credit support in the form of subordination, a reserve account, booked residual realizations, and excess spread. However, cumulative net losses are tracking higher than expected and are currently at 3.65% while total delinquencies are 4.81%, resulting in multiple draws on the reserve account. Despite the higher than expected loss pace and reserve account deficiency, 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 continues to grow and the notes are able to support a 'A' rating under the transaction structure irrespective of the insurance policy provided by XL Capital Assurance Inc. (XLCA XLCA Xl Capital Assurance, Inc. ). Consistent with Fitch's policy in other structured finance sectors, in the event that a transaction's underlying rating is higher than the insurer's current Insurer Financial Strength (IFS) rating, the Fitch rating will be based on the underlying rating as determined by the collateral pool rather than the insurer's IFS rating. Fitch will continue to closely monitor this transaction and may take additional rating actions in the event of changes in performance and credit enhancement measures. 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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