Fitch Affirms and Upgrades Huntington Technology Funding Trust 2014-A

Fitch Ratings has taken the following rating actions on Huntington Technology Funding Trust 2014-A:

-- Class A-3 affirmed at 'AAAsf Outlook Stable;

-- Class B upgraded to 'AAsf' from 'Asf'; Outlook revised to Stable from Positive;

-- Class C affirmed at 'BBBsf' Outlook Positive.

KEY RATING DRIVERS

Fitch reviewed Huntington Technology Funding Trust 2014-A, formerly known as Macquarie Equipment Funding Trust 2014-A. Class A-3 and C notes were affirmed, reflecting the credit enhancement (CE) levels available to the classes which provide for net loss coverage levels commensurate with the ratings. The upgrade of class B to 'AAsf' reflects the growth in CE for the class. The Stable Outlooks on class A and B notes reflect the expectation of performance for the remaining life of the transaction. The Positive Outlook on class C reflects the possibility of an upgrade over the next 12 to 18 months.

RATING SENSITIVITIES

Unanticipated increases in the frequency of defaults, or decreases in recovery rates, could produce loss levels higher than initially expected and could result in potential rating actions on the notes. In its initial review, Fitch evaluated the sensitivity of ratings assigned to unrated obligors to increased default levels. The transaction did show sensitivity to higher default rates, which Fitch stressed by assuming all unrated obligors carry a 'CCC' Issuer Default Rating. As a result of increased CE, the transaction currently shows minimal sensitivity to the same stress. However, a material increase in obligor concentrations may impact future sensitivities for this transaction. Initial Key Rating Drivers and Rating Sensitivities are further described in the new issue report published Aug. 13, 2014 available at www.fitchratings.com.

DUE DILIGENCE USAGE

No third-party due diligence was provided or reviewed in relation to this rating action.

Fitch's analysis of the Representations and Warranties (R&W) of this transaction can be found in 'Macquarie Equipment Funding Trust 2014-A - Appendix'. These R&W are compared to those of typical R&W for the asset class as detailed in the special report 'Representations, Warranties, and Enforcement Mechanisms in Global Structured Finance Transactions' dated May 2016.

Additional information is available at www.fitchratings.com.

Applicable Criteria

Counterparty Criteria for Structured Finance and Covered Bonds (pub. 18 Jul 2016)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=884963

Criteria for Rating U.S. Equipment Lease and Loan ABS (pub. 03 Dec 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=874138

Criteria for Servicing Continuity Risk in Structured Finance (pub. 17 Dec 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=875586

Global Rating Criteria for CLOs and Corporate CDOs (pub. 28 Jul 2016)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=885653

Global Structured Finance Rating Criteria (pub. 27 Jun 2016)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=883130

Related Research

Macquarie Equipment Funding Trust 2014-A: Appendix

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=760227

Additional Disclosures

Dodd-Frank Rating Information Disclosure Form

https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=1009725

Solicitation Status

https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=1009725

Endorsement Policy

https://www.fitchratings.com/jsp/creditdesk/PolicyRegulation.faces?context=2&detail=31

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