Fitch Rates GE Equipment Corporate Aircraft Trust, Series 2005-1.

CHICAGO -- Fitch rates the GE Equipment Corporate Aircraft Trust, series 2005-1 (GE ECAT 2005-1) as follows:

-- $413,000,000 class A-1 notes 'AAA';

-- $193,000,000 class A-2 notes 'AAA';

-- $158,925,000 class A-3 notes 'AAA';

-- $44,374,000 class B notes 'A';

-- $31,695,000 class C notes 'BBB';

-- $4,226,000 preferred trust certificates 'BB'.

The $841 million of offered notes are backed by loans originated by General Electric Capital Corporation (GECC) and secured by corporate aircraft. The GE ECAT 2005-1 transaction represents GECC's third corporate aircraft term asset-backed transaction.

The GE ECAT 2005-1 ratings are based on the following:

-- Historical delinquency and loss performance of the selected portfolio;

-- Origination, underwriting and servicing experience and procedures of GECC;

-- Role of GECC as servicer;

-- Obligor concentrations (the top one, five, and 10 obligors within GE ECAT 2005-1 are 2.37%, 11.83%, and 22.19% of the initial pool balance, respectively);

-- Of the initial pool balance, 81.20% of contracts and 90.53% of contracts by total loan balance include balloon payments;

-- Other collateral pool characteristics, including geographic and industry dispersion, as well as corporate aircraft vintage;

-- Credit enhancement (CE) for the rated notes and certificates;

-- Sound legal and cash flow structure of the transaction.

The 'AAA' rating on the senior notes reflects the CE provided by the subordination of the class B notes (5.25%), the class C notes (3.75%), the preferred trust certificates (0.50%), the initial reserve account (1.00%), available excess spread, and overcollateralization (OC) created by a partial turbo. The 'A' rating on the class B notes reflects the CE provided by the class C notes and the certificates, the reserve account, available excess spread, and OC created by a partial turbo. The 'BBB' rating on the class C notes reflects the CE provided by the subordinated preferred trust certificates, the reserve account, available excess spread, and OC created by a partial turbo. The 'BB' rating on the preferred trust certificates reflects the CE provided by the reserve account, available excess spread, and OC created by a partial turbo. The ratings address the ability of the trust to make payments of interest and principal in accordance with the terms of the legal documents.

The $845 million underlying collateral pool consists of 133 contracts originated by the Corporate Aircraft group within GECC's Commercial Equipment Financing division. Jets and turbo props are aircraft types that account for more than 98% of the initial pool balance at 91.67% and 6.62%, respectively. The top three aircraft vintage year concentrations are 2001-2005 (45.5%), 1996-2000 (20.46%), and 1986-1990 (16.58%). The overall pool is diversified geographically, with the top five states as follows: California (22.08%); Florida (9.47%); Delaware (7.26%); Pennsylvania (6.52%); and New Hampshire (3.67%). The highest single-obligor concentration is 2.37% of the initial pool balance, with the five largest obligors constituting 11.83%.

Credit enhancement was determined by running a series of scenarios for each class of notes through a cash flow model. The model reflects the securitization structure and was used to determine the break-even point of each class of notes. In consideration of the concentrations within the collateral pool, as well as the strong historical performance of GE's corporate aircraft portfolio, loan defaults and stresses were based on obligor concentrations. In addition, each stress scenario incorporated additional assumptions concerning default distribution, prepayments, recoveries, recovery lag times, and reductions in the available amounts of excess spread.

Under stress scenarios consistent with 'AAA', 'A', 'BBB', and 'BB' ratings, the credit enhancement structure was sufficient to ensure payment of the class A, B, and C notes, and the preferred trust certificates by the legal maturity date.

Fitch's rating definitions and the terms of use 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 are also available from the 'Code of Conduct' section of this site.