Fitch Rates GreatAmerica Leasing Receivables 2004-1, LLC.

CHICAGO -- Fitch rates the GreatAmerica Leasing Receivables 2004-1, LLC (GALC 2004-1) as follows:

-- $43,564,440 class A-1 notes 'F1+';

-- $43,564,440 class A-2 notes 'AAA';

-- $74,047,207 class A-3 notes 'AAA';

-- $47,760,449 class A-4 notes 'AAA';

-- $10,119,785 class B notes 'AA';

-- $11,724,141 class C notes 'A'.

All classes privately placed pursuant to Rule 144A.

The class A rating reflects credit enhancement provided by the subordination of the class B notes (4.10%), the class C notes (4.75%), the initial reserve account (1.30%), the issuer's retained interest (6.50%), and the booked residual cash flows (4.74%). The class B rating reflects credit enhancement provided by the class C notes, the reserve account, the issuer's retained interest, and the residual cash flows. The class C rating reflects credit enhancement provided by the reserve account, the issuer's retained interest, and the residual cash flows. The ratings address the payment of interest and principal in accordance with the terms of the legal documents.

The initial discounted contract balance of GALC 2004-1 is approximately $247.6 million. At closing the pool contains 19,205 contracts with a weighted average seasoning of approximately seven months. Major equipment types in the pool are copiers and printers (38.04%), telephone and fax machines (16.78%), medical equipment (14.58%), point of sale equipment (10.47%), and computer hardware and software equipment (7.12%). No other single type of equipment makes up more that 5.0% of the aggregate discounted receivable balance. Geographic concentrations include: California (8.37%), Florida (7.29%), Texas (6.93%), New York (6.52%), and Illinois (5.74%).

In determining the required level of credit enhancement, Fitch took into consideration the performance of GreatAmerica's past securitizations, as well as its total managed portfolio. Fitch analyzed cash flow models and assessed the trust's ability to pay off the notes under various stressed cash flow scenarios. In addition, Fitch applied a haircut to residuals, while incorporating a front-loaded, back-loaded, and GreatAmerica's actual loss curves to address the potential timing mismatch of residual receipts and small-ticket losses. Ultimately, credit enhancement levels were sized to withstand multiples of expected losses at each rating level over the life of the transaction.

Headquartered in Cedar Rapids, IA, GreatAmerica Leasing Corporation originates and services small-ticket commercial equipment leases to small businesses through a nationwide network of office equipment and telephone dealers.

Great America Leasing Receivables 2004-1, LLC, will be the sixth GreatAmerica securitization rated by Fitch. GreatAmerica Leasing Receivables 2002-1 and 2003-1 are the only outstanding term transactions and are both performing within Fitch's expectations.