NEW YORK - (Business Wire) Fitch Ratings has affirmed and revised the Rating Outlook on two classes of CIT Equipment Collateral 2008-VT1. In addition, Fitch affirms 7 classes of two CIT Equipment Collateral securitizations. Fitch has affirmed the following ratings:
CIT EC 2006-VT2
--Class A-4 at 'AAA'; Outlook Stable;
--Class B at 'AAA'; Outlook Stable;
--Class C at 'AA'; Outlook Stable;
--Class D at 'A'; Outlook Stable;
CIT EC 2008-VT1
--Classes A-2a, A-2b, and A-3 at 'AAA'; Outlook Stable;
--Class B at 'AA'; Outlook Stable;
--Class C at 'A'; Outlook to Negative from Stable;
--Class D at 'BBB'; Outlook to Negative from Stable.
The affirmations reflect increasing levels of credit enhancement available to all classes due to the deleveraging of the transactions. Based on Fitch's review, current credit support remains sufficient for the notes at the current rating levels, despite a continued steady pace of delinquencies and losses. As of the October 2009 reporting period, total delinquencies represented 5.98% and 4.98% of the 2006-VT2 and 2008-VT1 transactions, respectively. Cumulative net losses total 2.16% and 1.76%, respectively.
The Outlook revisions on the class C and D notes in the 2008-VT1 transaction reflect the higher than expected loss pace relative to prior transactions and Fitch's initial base case expectation. Additionally, Fitch believes the potential exists for further asset deterioration following the bankruptcy filing of CIT Group, Inc., and CIT Group Funding Company of Delaware, LLC, on Nov. 1, 2009. CIT Financial USA, an operating subsidiary of CIT Group, Inc., is the issuer and current servicer on the transactions, and was not included as part of the filing. Although Fitch believes the servicing of transactions will be minimally affected, delinquencies and losses could increase following the bankruptcy filing which may affect available credit support, and ultimately, the outstanding ratings on the more subordinate notes. Fitch has been in communication with the trustee and the servicer, and will continue to keep corresponding with the associated parties to assess the current situation and potential impact on the transactions.
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.
These ratings reflect the application of Fitch's current criteria which are available on Fitch's web site at 'www.fitchratings.com' and specifically include:
--'Rating Criteria for U.S. Equipment Lease and Loan Securitizations' dated June 16, 2008;
--'Global Structured Finance Rating Criteria' dated Sept. 30, 2009.
Additional information is available at 'www.fitchratings.com'.
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Fitch Ratings, Chicago
Juveria Mozaffar, 312-606-2335
Du Trieu, 312-368-2091
or
Media Relations:
Sandro Scenga, 212-908-0278, New York
Email: sandro.scenga@fitchratings.com
