Close

Welcome back to Stockhouse
Member Sign In

Email or Username:
Password:
Close

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.

Enter your email address:
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

Fitch Affirms CNL Funding 1999-1 LP; Negative Outlook Remains on 3

Fitch Ratings has taken the following rating actions on CNL Funding 1999-1 LP as seen below:

--Class A-2 affirmed at 'Asf', Outlook Stable;

--Class B affirmed at 'A-sf', Outlook Negative;

--Class C affirmed at 'BBB+sf,' Outlook Negative;

--Class D affirmed at BBBsf', Outlook Negative.

KEY RATING DRIVERS

The affirmation of the notes at their respective ratings reflects the growing credit enhancement (CE) available to each class which provides higher net loss coverage levels. Additionally, the transaction has continued to perform well since last review with minimal borrower delinquencies and defaults. The Stable Outlook on class A-2 notes reflects the expected performance of the class.

The Negative Outlook on classes B, C, and D reflect large obligor concentrations as the two largest borrowers comprise over 50% of the remaining pool. If credit enhancement growth outpaces that of the obligor concentrations, the Outlooks may be revised to Stable. However, the subordinate notes remain sensitive to any performance deterioration of the largest obligors.

Fitch will continue to monitor the transaction and may take additional rating actions in the event of changes in performance and credit enhancement measures.

RATING SENSITIVITIES

Continued performance of the collateral and any material prepayments may result in stable to positive rating actions for the notes. Conversely, unexpected performance deterioration may result in negative rating actions on the notes.

Additional information is available at 'www.fitchratings.com'

Applicable Criteria and Related Research:

--'Surveillance Criteria for Franchise Loan ABS' dated May 8, 2013;

--'Global Structured Finance Rating Criteria' dated May 24, 2013

Applicable Criteria and Related Research:

Surveillance Criteria for Franchise Loan ABS

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=708237

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=708661

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=804841

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE '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. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

Tags:

Rate this press release
0 stars
v
Usefulness

Clarity

Credibility
Add to favourites icon Add to favourites