Fitch Affirms Elara HGV Timeshare Trust, 2014-A

Fitch Ratings affirms both classes of notes on Elara HGV Timeshare Trust, 2014-A. A full list of rating actions follows at the end of this ratings action commentary.

KEY RATING DRIVERS

The affirmations to both classes of notes reflect performance within Fitch's initial expectation, growth in hard credit enhancement (CE) since close, and available loss coverage consistent with the current ratings. The Stable Rating Outlooks reflect Fitch's expectation that the notes will remain sufficiently enhanced to cover the stressed loss levels consistent with the current ratings.

RATING SENSITIVITIES

Unanticipated increases in the frequency of defaults could produce loss levels higher than the current expectations and impact available loss coverage. Lower loss coverage could impact ratings and Rating Outlooks, depending on the extent of the decline in coverage.

To date, the transaction has exhibited performance within Fitch's initial expectations with rising loss coverage. Due to the growth in credit enhancement levels and increased loss coverage afforded to the notes, a substantial increase in defaults would have to occur to have a negative impact on the updated ratings.

DUE DILIGENCE USAGE

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

For Fitch's initial Key Rating Drivers, Rating Sensitivities and the full detail analysis for this transaction, please see the New Issue report dated Oct. 14, 2014.

Fitch has affirmed the following ratings:

--Class A at 'Asf'; Outlook Stable;

--Class B at 'BBBsf'; Outlook Stable.

Additional information is available at www.fitchratings.com.

Applicable Criteria

Criteria for Rating U.S. Timeshare Loan ABS (pub. 03 Jun 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=866653

Global Structured Finance Rating Criteria (pub. 06 Jul 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=867952

Related Research

Elara HGV Timeshare Issuer 2014-A, LLC - Appendix

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=792228

Additional Disclosures

Dodd-Frank Rating Information Disclosure Form

https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=991709

Solicitation Status

https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=991709

Endorsement Policy

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

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