Fitch Ratings has affirmed and assigned Rating Outlooks to Sunterra Owner Trust 2004-1 (SOT 2004-1) as follows:
--Class A notes at 'AAA', Outlook Stable;
--Class B notes at 'AA', Outlook Positive;
--Class C notes at 'A', Outlook Positive;
--Class D notes at 'BBB', Outlook Positive.
SOT 2004-1 is a securitization of timeshare receivables originated by affiliates of the Sunterra Corporation, now serviced by Diamond Resorts Financial Services. Credit enhancement levels have grown consistently since the reserve account reached it required balance. While there has been deterioration in delinquency and default performance over the two years, cumulative gross defaults on the transaction to date have remained within Fitch's initial expectations.
The Positive Rating Outlooks on the subordinate notes reflect the consistent growth in credit enhancement for those classes and the resulting increase in default coverage levels.
Fitch will continue to closely monitor this transaction and may take additional rating actions in the event of changes in performance and credit enhancement measures.
Additional information is available at www.fitchratings.com.
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.
Contacts:
Fitch Ratings, Chicago
Bradley Sohl, 312-368-3127
Du Trieu,
312-368-2091
or
Media Relations:
Sandro Scenga,
212-908-0278, New York
Email: sandro.scenga@fitchratings.com
