Fitch Ratings has taken the following rating actions on the GE Equipment Midticket LLC, Series 2006-1:
--Classes A-3 and A-4 affirmed at 'AAA'; Outlook Stable;
--Class B upgraded to 'AAA' from 'AA'; Outlook to Stable from Positive;
--Class C upgraded to 'AA' from 'A'; Outlook Positive.
The upgrade to the class B and C notes is due to strong performance well inside of Fitch's initial expectations. As of the January 2010 reporting period, the transaction is 37 months seasoned at a 21% pool factor and has experienced only 35 bps in cumulative net losses while total delinquencies are currently 1.24%. As a result, credit enhancement for all notes, in the form of a reserve account and overcollateralization resulting from the use of excess spread to pay down the most senior notes outstanding, has increased. The class B notes also benefit from the subordination of the class C notes, while the class A notes benefit from the subordination of the class B and C notes.
Fitch will continue to closely monitor these transactions and may take additional rating actions in the event of continued positive performance and further increasing credit enhancement.
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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