Fitch Upgrades LEAF II Receivables Funding LLC Series 2007-1

Fitch Ratings has taken the following rating actions on LEAF II Receivables Funding LLC Series 2007-1 (LEAF 2007-1) as seen below:

--Class A-3 upgraded to 'AAAsf' from 'AAsf'.

The rating Outlook is Stable.

The review of LEAF 2007-1 is consistent with 'Criteria for Rating U.S. Equipment Lease and Loan ABS' dated Jan. 25, 2011.

The upgrade to the Class A-3 notes is reflective of increasing credit support provided by subordination and a reserve account. Of note, the balance of the reserve account exceeds the outstanding Class A-3 balance. While losses have been higher than initially anticipated and currently stand at 6.09%, current credit support was found to be consistent with the upgraded rating for the Class A-3 notes.

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'.

Applicable Criteria and Related Research:

--'Criteria for Rating U.S. Equipment Lease and Loan ABS' dated Jan. 25, 2011;

--'Global Structured Finance Rating Criteria' dated Aug. 16, 2010.

Applicable Criteria and Related Research:

Criteria for Rating U.S. Equipment Lease and Loan ABS

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=595006

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=547326

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Fitch Ratings
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Senior Director
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