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Fitch Ratings affirms outstanding classes of John Deere Owner Trust 2017-B notes.

New York: Fitch Ratings, a nationally recognized statistical rating organization (NRSRO) designated by the U.S. Securities and Exchange Commission, has affirmed the outstanding classes of John Deere Owner Trust 2017-B (JDOT 2017-B) notes.

These are as follows: --Class A-2A at 'AAAsf'; Outlook Stable; --Class A-2B at 'AAAsf'; Outlook Stable; --Class A-3 at 'AAAsf'; Outlook Stable; and --Class A-4 at 'AAAsf'; Outlook Stable. The affirmation of the outstanding class A notes reflects loss coverage levels consistent with a 'AAAsf' rating. The Stable Outlook for class A reflects Fitch's expectation for loss coverage and credit enhancement (CE) to continue to improve as the transactions amortize.

Since inception, asset performance has been strong for JDOT 2017-B, as evidenced by low delinquencies and cumulative net losses (CNL), despite weakness within the agriculture sector over the past several years. As of the June 2018 servicer report, the pool has amortized to a 63.7% pool factor. Current 60+ day delinquencies are at 1.24%, and CNL is at 0.05%. Losses are projecting within the initial base case loss proxy of 1.00% and credit enhancement for the notes has increased to 5.5% from 3.5%.

Fitch utilized a loss proxy of 1.00%. Obligor concentration risk is limited as obligor concentrations have declined from initial levels. As such, the primary rating approach is the stressed loss approach. Per criteria, cash flow modeling was deemed unnecessary for this transaction as this is a single class structure with 'AAAsf' ratings, losses are tracking significantly inside expectation, and CE has increased notably since close.

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Publication:Daily the Pak Banker (Lahore, Pakistan)
Date:Sep 9, 2018
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