Fitch Upgrades CNH Equipment Trust 2005-B

Date : 05/05/2008 @ 1:09PM
Source : Business Wire
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Fitch Upgrades CNH Equipment Trust 2005-B

Fitch has taken the following rating actions on CNH Equipment Trust 2005-B: --Class B notes upgraded to 'AAA' from 'AA'; --Class C notes upgraded to 'AA' from 'A'; --Class A-3, A-4a, and A-4b notes affirmed at 'AAA'.

Fitch's review of the CNH 2005-B transaction noted performance measures inside of Fitch's original base case expectations and the increasing levels of credit enhancement available to each class of notes. In addition, under the credit enhancement structure, the bonds can now withstand stress scenarios consistent with the upgraded ratings and still make full payments of principal and interest in accordance with the terms of the transaction documents.

Specifically, loss experience has been better than expected, with cumulative net defaults currently at 0.63%, as of the April 2008 reporting period. As a result, the lifetime collateral losses for the transaction may yield an ultimate default number less than Fitch's original assumptions. Total delinquencies have increased slightly since Fitch's last review, with current total delinquencies at 0.63%. However, delinquency performance still continues to perform within Fitch's expectations.

Fitch will continue to closely monitor these transactions and may take additional rating action in the event of changes in performance and credit enhancement measures.

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.

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