Fitch Rates Elara HGV Timeshare Issuer 2014-A, LLC

CHICAGO–(BUSINESS WIRE)–

Fitch Ratings has assigned the following ratings to the notes issued by Elara HGV Timeshare Issuer 2014-A, LLC:

–$107,530,000, class A asset-backed notes ‘Asf’; Outlook Stable;

–$12,650,000, class B asset-backed notes ‘BBBsf’; Outlook Stable.

KEY RATING DRIVERS:

Ratings Capped at ‘Asf’: Given that this is the first ABS transaction by LV Tower, the limited managed pool data and the unique counterparty arrangements, the ratings for 2014-A were capped at ‘Asf’.

Strong Obligor Credit Quality: The 2014-A pool has a weighted average (WA) Fair Issac Corp. (FICO) score of 743. This is consistent with the recently issued HGVT 2014-A transaction. Based on the collateral pool, Fitch has arrived at a cumulative gross default (CGD) proxy of 13.00%.

Single Timeshare Site: The loans are associated with a single resort, Elara, in Las Vegas. However, these owners have the same usage and exchange rights as other HRC timeshare owners and become club members within HRC’s system. As such, the risk associated with a single site property is mitigated.

Presence of Prefunding Account: The 2014-A transaction features a prefunding account that will hold up to 10% of the initial note balance after the closing date to purchase eligible timeshare loans.

Available CE Structure: Initial hard credit enhancement (CE) is expected to be 16.00% and 6.00% for class A and B notes, respectively. Soft CE is also provided by excess spread and is expected to be 9.89% per annum.

Quality of Origination/Servicing: LV Tower and HRC have demonstrated sufficient abilities as an originator and servicer of timeshare loans, respectively. This is evidenced by the historical delinquency and loss performance of HRC’s managed portfolio and previous transactions.

Legal Structure Integrity: The legal structure of the transaction should provide that a bankruptcy of LV Tower, HRC or GVS would not impair the timeliness of payments on the securities.

RATING SENSITIVITIES

Unanticipated increases in the frequency of defaults could produce CGD levels higher than the base case and would likely result in declines of CE and remaining default coverage levels available to the notes. Additionally, unanticipated increases in prepayment activity could also result in a decline in coverage. Decreased default coverage may make certain note ratings susceptible to potential negative rating actions, depending on the extent of the decline in coverage.

Thus, Fitch conducts sensitivity analysis by stressing both a transaction’s initial base case CGD and prepayment assumptions by 1.5x and 2x and examining the rating implications on all classes of issued notes. The 1.5x and 2x increases of the base case CGD and prepayment assumptions represent moderate and severe stresses, respectively, and are intended to provide an indication of the rating sensitivity of notes to unexpected deterioration of a trust’s performance.

Key Rating Drivers and Rating Sensitivities are further described in the presale report dated Oct. 14, 2014. Fitch’s analysis of the Representations and Warranties (RW) of this transaction can be found in Elara HGV Timeshare Issuer 2014-A, LLC – Appendix’. These RWs are compared to those of typical RW for the asset class as detailed in the special report ‘Representations, Warranties, and Enforcement Mechanisms in Global Structured Finance Transactions’ dated April 17, 2012.

The presale report is available to all investors on Fitch’s website at ‘www.fitchratings.com‘. For more information about Fitch’s comprehensive subscription service FitchResearch, which includes all presale reports, surveillance, and credit reports on more than 20 asset classes, contact product sales at +1-212-908-0800 or at ‘webmaster@fitchratings.com’.

Additional information is available at ‘www.fitchratings.com‘.

Applicable Criteria and Related Research:

–’Elara HGV Timeshare Issuer 2014-A, LLC (Oct. 14, 2014);

–’Elara HGV Timeshare Issuer 2014-A, LLC – Appendix’ (Oct. 14, 2014);

–’Criteria for Rating U.S. Timeshare Loan ABS’ (June 9, 2014);

–’Global Structured Finance Rating Criteria’ (Aug. 4, 2014);

–’Representations, Warranties, and Enforcement Mechanisms in Global Structured Finance Transactions’ (April 17, 2012).

Applicable Criteria and Related Research:

Elara HGV Timeshare Issuer 2014-A, LLC (US ABS)

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=791408

Elara HGV Timeshare Issuer 2014-A, LLC – Appendix

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

Criteria for Rating U.S. Timeshare Loan ABS

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=749780

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=754389

Representations, Warranties, and Enforcement Mechanisms in Global Structured Finance Transactions

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=676496

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=911874

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. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

Article source: http://finance.yahoo.com/news/fitch-rates-elara-hgv-timeshare-180700175.html

Fitch Rates Elara HGV Timeshare Issuer 2014-A, LLC

CHICAGO–(BUSINESS WIRE)–

Fitch Ratings has assigned the following ratings to the notes issued by Elara HGV Timeshare Issuer 2014-A, LLC:

–$107,530,000, class A asset-backed notes ‘Asf’; Outlook Stable;

–$12,650,000, class B asset-backed notes ‘BBBsf’; Outlook Stable.

KEY RATING DRIVERS:

Ratings Capped at ‘Asf’: Given that this is the first ABS transaction by LV Tower, the limited managed pool data and the unique counterparty arrangements, the ratings for 2014-A were capped at ‘Asf’.

Strong Obligor Credit Quality: The 2014-A pool has a weighted average (WA) Fair Issac Corp. (FICO) score of 743. This is consistent with the recently issued HGVT 2014-A transaction. Based on the collateral pool, Fitch has arrived at a cumulative gross default (CGD) proxy of 13.00%.

Single Timeshare Site: The loans are associated with a single resort, Elara, in Las Vegas. However, these owners have the same usage and exchange rights as other HRC timeshare owners and become club members within HRC’s system. As such, the risk associated with a single site property is mitigated.

Presence of Prefunding Account: The 2014-A transaction features a prefunding account that will hold up to 10% of the initial note balance after the closing date to purchase eligible timeshare loans.

Available CE Structure: Initial hard credit enhancement (CE) is expected to be 16.00% and 6.00% for class A and B notes, respectively. Soft CE is also provided by excess spread and is expected to be 9.89% per annum.

Quality of Origination/Servicing: LV Tower and HRC have demonstrated sufficient abilities as an originator and servicer of timeshare loans, respectively. This is evidenced by the historical delinquency and loss performance of HRC’s managed portfolio and previous transactions.

Legal Structure Integrity: The legal structure of the transaction should provide that a bankruptcy of LV Tower, HRC or GVS would not impair the timeliness of payments on the securities.

RATING SENSITIVITIES

Unanticipated increases in the frequency of defaults could produce CGD levels higher than the base case and would likely result in declines of CE and remaining default coverage levels available to the notes. Additionally, unanticipated increases in prepayment activity could also result in a decline in coverage. Decreased default coverage may make certain note ratings susceptible to potential negative rating actions, depending on the extent of the decline in coverage.

Thus, Fitch conducts sensitivity analysis by stressing both a transaction’s initial base case CGD and prepayment assumptions by 1.5x and 2x and examining the rating implications on all classes of issued notes. The 1.5x and 2x increases of the base case CGD and prepayment assumptions represent moderate and severe stresses, respectively, and are intended to provide an indication of the rating sensitivity of notes to unexpected deterioration of a trust’s performance.

Key Rating Drivers and Rating Sensitivities are further described in the presale report dated Oct. 14, 2014. Fitch’s analysis of the Representations and Warranties (RW) of this transaction can be found in Elara HGV Timeshare Issuer 2014-A, LLC – Appendix’. These RWs are compared to those of typical RW for the asset class as detailed in the special report ‘Representations, Warranties, and Enforcement Mechanisms in Global Structured Finance Transactions’ dated April 17, 2012.

The presale report is available to all investors on Fitch’s website at ‘www.fitchratings.com‘. For more information about Fitch’s comprehensive subscription service FitchResearch, which includes all presale reports, surveillance, and credit reports on more than 20 asset classes, contact product sales at +1-212-908-0800 or at ‘webmaster@fitchratings.com’.

Additional information is available at ‘www.fitchratings.com‘.

Applicable Criteria and Related Research:

–’Elara HGV Timeshare Issuer 2014-A, LLC (Oct. 14, 2014);

–’Elara HGV Timeshare Issuer 2014-A, LLC – Appendix’ (Oct. 14, 2014);

–’Criteria for Rating U.S. Timeshare Loan ABS’ (June 9, 2014);

–’Global Structured Finance Rating Criteria’ (Aug. 4, 2014);

–’Representations, Warranties, and Enforcement Mechanisms in Global Structured Finance Transactions’ (April 17, 2012).

Applicable Criteria and Related Research:

Elara HGV Timeshare Issuer 2014-A, LLC (US ABS)

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=791408

Elara HGV Timeshare Issuer 2014-A, LLC – Appendix

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

Criteria for Rating U.S. Timeshare Loan ABS

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=749780

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=754389

Representations, Warranties, and Enforcement Mechanisms in Global Structured Finance Transactions

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=676496

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=911874

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. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

Article source: http://finance.yahoo.com/news/fitch-rates-elara-hgv-timeshare-180700175.html

American Airlines to Increases Number of Flight Seats to Mazatlán Shares El Cid Timeshare

MAZATLÁN, Mexico, Oct. 29, 2014 /PRNewswire-iReach/ — El Cid Timeshare knows that the world is full of amazing destinations that travelers can enjoy. However, it also knows that one of the world’s best-kept secrets is Mazatlán, Mexico. Mazatlán is a city that offers both beauty and peace. With its rich history and relaxed atmosphere, Mazatlán is a one-of-a-kind spot to enjoy sightseeing. It is also an amazing destination for both sports and outdoor activities. Additionally, Mazatlán is a lively city that features world-renowned arts, performance, and culture, making it an ideal getaway destination for those who love music, theater, and dance.

Photo – http://photos.prnewswire.com/prnh/20141029/155251

In many ways, Mazatlán is a destination that will satisfy the needs of a variety of travelers and is the ideal spot for just about anyone who is looking for a perfect getaway. Because it knows what an amazing destination Mazatlán is, El Cid Timeshare is pleased to reveal that it will now be even easier for travelers to visit this top vacation location. This is because, starting next month; American Airlines will be offering travelers new chances to visit this outstanding city.

Starting in November, the flight seats available to Mazatlán will increase by 100 percent, totaling in 6517 seats. There will additionally be increased flight frequency to Mazatlán, with 52 frequencies each week, an increase of 44 percent over previous flights. These additions will make it easier than ever before for more travelers to visit this beautiful paradise and enjoy all that there is to experience.

Travelers who take advantage of this increase will be able to appreciate a variety of seasonal offerings when they arrive this October, including Mazatlán games that are part of the Mexican Baseball season and performances that will be taking place as part of the Mazatlán Cultural Festival. As always, visitors can also take tours and wander around the city streets for an unforgettable and culture-rich getaway. El Cid Timeshare hopes that many travelers will take advantage of these new flight opportunities and start planning their trip to Mazatlán now.

Complimentary El Cid Vacations Club Member Mobile App – Download Now 
El Cid Vacations Club is a global leader in the vacation ownership and resort industry, delivering a wide variety of memorable vacation experiences for members. ECVC continually strives to enhance its member services and guest experiences. Members are now invited to take advantage of downloading the complimentary El Cid Vacations Club Member mobile app available on both the App Store and Google Play. This application allows members to stay up to date on the most recent news, make reservations, and always stay in contact with ECVC. This is the perfect opportunity for ECVC members to plan their next dream vacation at one of the many stunning El Cid properties. For more information, visit http://www.elcidvacationsclub.com.

Media Contact: El Cid Timeshare, El Cid Timeshare, 1 866 552 7320, ownersrelations@elcid.com.mx

News distributed by PR Newswire iReach: https://ireach.prnewswire.com

Article source: http://ca.finance.yahoo.com/news/american-airlines-increases-number-flight-160000707.html

American Airlines to Increases Number of Flight Seats to Mazatlán Shares El Cid Timeshare

MAZATLÁN, Mexico, Oct. 29, 2014 /PRNewswire-iReach/ — El Cid Timeshare knows that the world is full of amazing destinations that travelers can enjoy. However, it also knows that one of the world’s best-kept secrets is Mazatlán, Mexico. Mazatlán is a city that offers both beauty and peace. With its rich history and relaxed atmosphere, Mazatlán is a one-of-a-kind spot to enjoy sightseeing. It is also an amazing destination for both sports and outdoor activities. Additionally, Mazatlán is a lively city that features world-renowned arts, performance, and culture, making it an ideal getaway destination for those who love music, theater, and dance.

Photo – http://photos.prnewswire.com/prnh/20141029/155251

In many ways, Mazatlán is a destination that will satisfy the needs of a variety of travelers and is the ideal spot for just about anyone who is looking for a perfect getaway. Because it knows what an amazing destination Mazatlán is, El Cid Timeshare is pleased to reveal that it will now be even easier for travelers to visit this top vacation location. This is because, starting next month; American Airlines will be offering travelers new chances to visit this outstanding city.

Starting in November, the flight seats available to Mazatlán will increase by 100 percent, totaling in 6517 seats. There will additionally be increased flight frequency to Mazatlán, with 52 frequencies each week, an increase of 44 percent over previous flights. These additions will make it easier than ever before for more travelers to visit this beautiful paradise and enjoy all that there is to experience.

Travelers who take advantage of this increase will be able to appreciate a variety of seasonal offerings when they arrive this October, including Mazatlán games that are part of the Mexican Baseball season and performances that will be taking place as part of the Mazatlán Cultural Festival. As always, visitors can also take tours and wander around the city streets for an unforgettable and culture-rich getaway. El Cid Timeshare hopes that many travelers will take advantage of these new flight opportunities and start planning their trip to Mazatlán now.

Complimentary El Cid Vacations Club Member Mobile App – Download Now 
El Cid Vacations Club is a global leader in the vacation ownership and resort industry, delivering a wide variety of memorable vacation experiences for members. ECVC continually strives to enhance its member services and guest experiences. Members are now invited to take advantage of downloading the complimentary El Cid Vacations Club Member mobile app available on both the App Store and Google Play. This application allows members to stay up to date on the most recent news, make reservations, and always stay in contact with ECVC. This is the perfect opportunity for ECVC members to plan their next dream vacation at one of the many stunning El Cid properties. For more information, visit http://www.elcidvacationsclub.com.

Media Contact: El Cid Timeshare, El Cid Timeshare, 1 866 552 7320, ownersrelations@elcid.com.mx

News distributed by PR Newswire iReach: https://ireach.prnewswire.com

Article source: http://ca.finance.yahoo.com/news/american-airlines-increases-number-flight-160000707.html

American Airlines to Increases Number of Flight Seats to Mazatlán Shares El Cid Timeshare

MAZATLÁN, Mexico, Oct. 29, 2014 /PRNewswire-iReach/ — El Cid Timeshare knows that the world is full of amazing destinations that travelers can enjoy. However, it also knows that one of the world’s best-kept secrets is Mazatlán, Mexico. Mazatlán is a city that offers both beauty and peace. With its rich history and relaxed atmosphere, Mazatlán is a one-of-a-kind spot to enjoy sightseeing. It is also an amazing destination for both sports and outdoor activities. Additionally, Mazatlán is a lively city that features world-renowned arts, performance, and culture, making it an ideal getaway destination for those who love music, theater, and dance.

Photo – http://photos.prnewswire.com/prnh/20141029/155251

In many ways, Mazatlán is a destination that will satisfy the needs of a variety of travelers and is the ideal spot for just about anyone who is looking for a perfect getaway. Because it knows what an amazing destination Mazatlán is, El Cid Timeshare is pleased to reveal that it will now be even easier for travelers to visit this top vacation location. This is because, starting next month; American Airlines will be offering travelers new chances to visit this outstanding city.

Starting in November, the flight seats available to Mazatlán will increase by 100 percent, totaling in 6517 seats. There will additionally be increased flight frequency to Mazatlán, with 52 frequencies each week, an increase of 44 percent over previous flights. These additions will make it easier than ever before for more travelers to visit this beautiful paradise and enjoy all that there is to experience.

Travelers who take advantage of this increase will be able to appreciate a variety of seasonal offerings when they arrive this October, including Mazatlán games that are part of the Mexican Baseball season and performances that will be taking place as part of the Mazatlán Cultural Festival. As always, visitors can also take tours and wander around the city streets for an unforgettable and culture-rich getaway. El Cid Timeshare hopes that many travelers will take advantage of these new flight opportunities and start planning their trip to Mazatlán now.

Complimentary El Cid Vacations Club Member Mobile App – Download Now 
El Cid Vacations Club is a global leader in the vacation ownership and resort industry, delivering a wide variety of memorable vacation experiences for members. ECVC continually strives to enhance its member services and guest experiences. Members are now invited to take advantage of downloading the complimentary El Cid Vacations Club Member mobile app available on both the App Store and Google Play. This application allows members to stay up to date on the most recent news, make reservations, and always stay in contact with ECVC. This is the perfect opportunity for ECVC members to plan their next dream vacation at one of the many stunning El Cid properties. For more information, visit http://www.elcidvacationsclub.com.

Media Contact: El Cid Timeshare, El Cid Timeshare, 1 866 552 7320, ownersrelations@elcid.com.mx

News distributed by PR Newswire iReach: https://ireach.prnewswire.com

Article source: http://ca.finance.yahoo.com/news/american-airlines-increases-number-flight-160000707.html

Fitch Expects to Rate Sierra Timeshare 2014-3 Receivables Funding LLC

NEW YORK–(BUSINESS WIRE)–

Fitch Ratings assigns the following expected ratings to Sierra Timeshare 2014-2 Receivables Funding LLC:

–$ 255,230,000 class A asset-backed notes ‘Asf’; Outlook Stable;

–$ 69,770,000 class B asset-backed notes ‘BBBsf’; Outlook Stable.

KEY RATING DRIVERS

Stable Collateral Quality: Approximately 64.9% of Sierra 2014-3 consists of WVRI-originated loans; the remainder are WRDC loans. Fitch has determined that, on a like-for-like FICO basis, WRDC’s receivables perform better than WVRI’s. The weighted average (WA) current FICO score of the pool is 716. However, seasoning has declined relative to 2014-2.

Increase in Longer Term Loans: The 2014-3 pool includes approximately 5.0% 15-year loans. This is a notable increase from the 2014-2 transaction, which only had 0.24%. Historically, longer-term loans perform worse than the 10 year loans that represent approximately 95.0% of the pool.

Stabilization in WVRI Performance: Similar to other timeshare originators, Wyndham Worldwide’s delinquency and default performance exhibited notable increases in the 2007 to 2008 vintages. However, WRDC’s performance has improved since 2009 while WVRI continues to experience high defaults. Nonetheless, the 2013 vintage within the WVRI portfolio demonstrates relative stabilization in default performance. Fitch’s cumulative gross default (CGD) proxy for this pool is 19.50%.

Sufficient CE Structure: Initial hard credit enhancement (CE) is expected to be 33.00% and 14.00% for class A and B notes, respectively. Hard CE is composed of overcollateralization (OC), a letter of credit (LOC) reserve account, and subordination. Soft CE is also provided by excess spread and is expected to be 10.14% per annum.

Quality of Origination/Servicing: Wyndham Worldwide has demonstrated sufficient abilities as an originator and servicer of timeshare loans. This is evidenced by the historical delinquency and loss performance of securitized trusts and of the managed portfolio.

Legal Structure Integrity: The legal structure of the transaction should provide that a bankruptcy of Wyndham Worldwide and Wyndham Consumer Finance, Inc. (WCF) would not impair the timeliness of payments on the securities.

RATING SENSITIVITIES

Unanticipated increases in the frequency of defaults could produce cumulative gross default (CGD) levels higher than the base case and would likely result in declines of credit enhancement and remaining default coverage levels available to the notes. Additionally, unanticipated increases in prepayment activity could also result in a decline in coverage. Decreased default coverage may make certain note ratings susceptible to potential negative rating actions, depending on the extent of the decline in coverage.

Thus, Fitch conducts sensitivity analysis stressing both a transaction’s initial base case CGD and prepayment assumptions by 1.5x and 2.0x and examining the rating implications on all classes of issued notes. The 1.5x and 2.0x increases of the base case CGD and prepayment assumptions represent moderate and severe stresses, respectively, and are intended to provide an indication of the rating sensitivity of notes to unexpected deterioration of a trust’s performance.

Key Rating Drivers and Rating Sensitivities are further described in the presale report dated October 23, 2014. Fitch’s analysis of the Representations and Warranties (RW) of this transaction can be found in ‘Sierra Timeshare 2014-3 Receivables Funding LLC – Appendix’. These RWs are compared to those of typical RW for the asset class as detailed in the special report ‘Representations, Warranties, and Enforcement Mechanisms in Global Structured Finance Transactions’ dated April 17, 2012.

The presale report is available to all investors on Fitch’s website at ‘www.fitchratings.com‘. For more information about Fitch’s comprehensive subscription service FitchResearch, which includes all presale reports, surveillance, and credit reports on more than 20 asset classes, contact product sales at +1-212-908-0800 or at ‘webmaster@fitchratings.com’.

Additional information is available at ‘www.fitchratings.com‘.

Applicable Criteria and Related Research:

–’Sierra Timeshare 2014-3 Receivable Funding LLC’ dated Oct. 23, 2014;

–’Sierra Timeshare 2014-3 Receivable Funding LLC–Appendix’ dated Oct. 23, 2014;

–’Criteria for Rating U.S. Timeshare Loan ABS’ dated June 9, 2014;

–’Global Structured Finance Rating Criteria’ dated May 24, 2013;

–’Representations, Warranties, and Enforcement Mechanisms in Global Structured Finance Transactions’ dated April 17, 2012.

Applicable Criteria and Related Research: Sierra Timeshare 2014-3 Receivables Funding LLC (US ABS)

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=797408

Criteria for Rating U.S. Timeshare Loan ABS

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=749780

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=754389

Representations, Warranties, and Enforcement Mechanisms in Global Structured Finance Transactions

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=676496

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=905434

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. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

Article source: http://finance.yahoo.com/news/fitch-expects-rate-sierra-timeshare-140200717.html

Fitch Expects to Rate Sierra Timeshare 2014-3 Receivables Funding LLC

NEW YORK–(BUSINESS WIRE)–

Fitch Ratings assigns the following expected ratings to Sierra Timeshare 2014-2 Receivables Funding LLC:

–$ 255,230,000 class A asset-backed notes ‘Asf’; Outlook Stable;

–$ 69,770,000 class B asset-backed notes ‘BBBsf’; Outlook Stable.

KEY RATING DRIVERS

Stable Collateral Quality: Approximately 64.9% of Sierra 2014-3 consists of WVRI-originated loans; the remainder are WRDC loans. Fitch has determined that, on a like-for-like FICO basis, WRDC’s receivables perform better than WVRI’s. The weighted average (WA) current FICO score of the pool is 716. However, seasoning has declined relative to 2014-2.

Increase in Longer Term Loans: The 2014-3 pool includes approximately 5.0% 15-year loans. This is a notable increase from the 2014-2 transaction, which only had 0.24%. Historically, longer-term loans perform worse than the 10 year loans that represent approximately 95.0% of the pool.

Stabilization in WVRI Performance: Similar to other timeshare originators, Wyndham Worldwide’s delinquency and default performance exhibited notable increases in the 2007 to 2008 vintages. However, WRDC’s performance has improved since 2009 while WVRI continues to experience high defaults. Nonetheless, the 2013 vintage within the WVRI portfolio demonstrates relative stabilization in default performance. Fitch’s cumulative gross default (CGD) proxy for this pool is 19.50%.

Sufficient CE Structure: Initial hard credit enhancement (CE) is expected to be 33.00% and 14.00% for class A and B notes, respectively. Hard CE is composed of overcollateralization (OC), a letter of credit (LOC) reserve account, and subordination. Soft CE is also provided by excess spread and is expected to be 10.14% per annum.

Quality of Origination/Servicing: Wyndham Worldwide has demonstrated sufficient abilities as an originator and servicer of timeshare loans. This is evidenced by the historical delinquency and loss performance of securitized trusts and of the managed portfolio.

Legal Structure Integrity: The legal structure of the transaction should provide that a bankruptcy of Wyndham Worldwide and Wyndham Consumer Finance, Inc. (WCF) would not impair the timeliness of payments on the securities.

RATING SENSITIVITIES

Unanticipated increases in the frequency of defaults could produce cumulative gross default (CGD) levels higher than the base case and would likely result in declines of credit enhancement and remaining default coverage levels available to the notes. Additionally, unanticipated increases in prepayment activity could also result in a decline in coverage. Decreased default coverage may make certain note ratings susceptible to potential negative rating actions, depending on the extent of the decline in coverage.

Thus, Fitch conducts sensitivity analysis stressing both a transaction’s initial base case CGD and prepayment assumptions by 1.5x and 2.0x and examining the rating implications on all classes of issued notes. The 1.5x and 2.0x increases of the base case CGD and prepayment assumptions represent moderate and severe stresses, respectively, and are intended to provide an indication of the rating sensitivity of notes to unexpected deterioration of a trust’s performance.

Key Rating Drivers and Rating Sensitivities are further described in the presale report dated October 23, 2014. Fitch’s analysis of the Representations and Warranties (RW) of this transaction can be found in ‘Sierra Timeshare 2014-3 Receivables Funding LLC – Appendix’. These RWs are compared to those of typical RW for the asset class as detailed in the special report ‘Representations, Warranties, and Enforcement Mechanisms in Global Structured Finance Transactions’ dated April 17, 2012.

The presale report is available to all investors on Fitch’s website at ‘www.fitchratings.com‘. For more information about Fitch’s comprehensive subscription service FitchResearch, which includes all presale reports, surveillance, and credit reports on more than 20 asset classes, contact product sales at +1-212-908-0800 or at ‘webmaster@fitchratings.com’.

Additional information is available at ‘www.fitchratings.com‘.

Applicable Criteria and Related Research:

–’Sierra Timeshare 2014-3 Receivable Funding LLC’ dated Oct. 23, 2014;

–’Sierra Timeshare 2014-3 Receivable Funding LLC–Appendix’ dated Oct. 23, 2014;

–’Criteria for Rating U.S. Timeshare Loan ABS’ dated June 9, 2014;

–’Global Structured Finance Rating Criteria’ dated May 24, 2013;

–’Representations, Warranties, and Enforcement Mechanisms in Global Structured Finance Transactions’ dated April 17, 2012.

Applicable Criteria and Related Research: Sierra Timeshare 2014-3 Receivables Funding LLC (US ABS)

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=797408

Criteria for Rating U.S. Timeshare Loan ABS

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=749780

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=754389

Representations, Warranties, and Enforcement Mechanisms in Global Structured Finance Transactions

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=676496

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=905434

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. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

Article source: http://finance.yahoo.com/news/fitch-expects-rate-sierra-timeshare-140200717.html

Fitch Expects to Rate Sierra Timeshare 2014-3 Receivables Funding LLC

NEW YORK–(BUSINESS WIRE)–

Fitch Ratings assigns the following expected ratings to Sierra Timeshare 2014-2 Receivables Funding LLC:

–$ 255,230,000 class A asset-backed notes ‘Asf’; Outlook Stable;

–$ 69,770,000 class B asset-backed notes ‘BBBsf’; Outlook Stable.

KEY RATING DRIVERS

Stable Collateral Quality: Approximately 64.9% of Sierra 2014-3 consists of WVRI-originated loans; the remainder are WRDC loans. Fitch has determined that, on a like-for-like FICO basis, WRDC’s receivables perform better than WVRI’s. The weighted average (WA) current FICO score of the pool is 716. However, seasoning has declined relative to 2014-2.

Increase in Longer Term Loans: The 2014-3 pool includes approximately 5.0% 15-year loans. This is a notable increase from the 2014-2 transaction, which only had 0.24%. Historically, longer-term loans perform worse than the 10 year loans that represent approximately 95.0% of the pool.

Stabilization in WVRI Performance: Similar to other timeshare originators, Wyndham Worldwide’s delinquency and default performance exhibited notable increases in the 2007 to 2008 vintages. However, WRDC’s performance has improved since 2009 while WVRI continues to experience high defaults. Nonetheless, the 2013 vintage within the WVRI portfolio demonstrates relative stabilization in default performance. Fitch’s cumulative gross default (CGD) proxy for this pool is 19.50%.

Sufficient CE Structure: Initial hard credit enhancement (CE) is expected to be 33.00% and 14.00% for class A and B notes, respectively. Hard CE is composed of overcollateralization (OC), a letter of credit (LOC) reserve account, and subordination. Soft CE is also provided by excess spread and is expected to be 10.14% per annum.

Quality of Origination/Servicing: Wyndham Worldwide has demonstrated sufficient abilities as an originator and servicer of timeshare loans. This is evidenced by the historical delinquency and loss performance of securitized trusts and of the managed portfolio.

Legal Structure Integrity: The legal structure of the transaction should provide that a bankruptcy of Wyndham Worldwide and Wyndham Consumer Finance, Inc. (WCF) would not impair the timeliness of payments on the securities.

RATING SENSITIVITIES

Unanticipated increases in the frequency of defaults could produce cumulative gross default (CGD) levels higher than the base case and would likely result in declines of credit enhancement and remaining default coverage levels available to the notes. Additionally, unanticipated increases in prepayment activity could also result in a decline in coverage. Decreased default coverage may make certain note ratings susceptible to potential negative rating actions, depending on the extent of the decline in coverage.

Thus, Fitch conducts sensitivity analysis stressing both a transaction’s initial base case CGD and prepayment assumptions by 1.5x and 2.0x and examining the rating implications on all classes of issued notes. The 1.5x and 2.0x increases of the base case CGD and prepayment assumptions represent moderate and severe stresses, respectively, and are intended to provide an indication of the rating sensitivity of notes to unexpected deterioration of a trust’s performance.

Key Rating Drivers and Rating Sensitivities are further described in the presale report dated October 23, 2014. Fitch’s analysis of the Representations and Warranties (RW) of this transaction can be found in ‘Sierra Timeshare 2014-3 Receivables Funding LLC – Appendix’. These RWs are compared to those of typical RW for the asset class as detailed in the special report ‘Representations, Warranties, and Enforcement Mechanisms in Global Structured Finance Transactions’ dated April 17, 2012.

The presale report is available to all investors on Fitch’s website at ‘www.fitchratings.com‘. For more information about Fitch’s comprehensive subscription service FitchResearch, which includes all presale reports, surveillance, and credit reports on more than 20 asset classes, contact product sales at +1-212-908-0800 or at ‘webmaster@fitchratings.com’.

Additional information is available at ‘www.fitchratings.com‘.

Applicable Criteria and Related Research:

–’Sierra Timeshare 2014-3 Receivable Funding LLC’ dated Oct. 23, 2014;

–’Sierra Timeshare 2014-3 Receivable Funding LLC–Appendix’ dated Oct. 23, 2014;

–’Criteria for Rating U.S. Timeshare Loan ABS’ dated June 9, 2014;

–’Global Structured Finance Rating Criteria’ dated May 24, 2013;

–’Representations, Warranties, and Enforcement Mechanisms in Global Structured Finance Transactions’ dated April 17, 2012.

Applicable Criteria and Related Research: Sierra Timeshare 2014-3 Receivables Funding LLC (US ABS)

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=797408

Criteria for Rating U.S. Timeshare Loan ABS

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=749780

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=754389

Representations, Warranties, and Enforcement Mechanisms in Global Structured Finance Transactions

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=676496

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=905434

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. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

Article source: http://finance.yahoo.com/news/fitch-expects-rate-sierra-timeshare-140200717.html

Fitch Expects to Rate Sierra Timeshare 2014-3 Receivables Funding LLC

NEW YORK–(BUSINESS WIRE)–

Fitch Ratings assigns the following expected ratings to Sierra Timeshare 2014-2 Receivables Funding LLC:

–$ 255,230,000 class A asset-backed notes ‘Asf’; Outlook Stable;

–$ 69,770,000 class B asset-backed notes ‘BBBsf’; Outlook Stable.

KEY RATING DRIVERS

Stable Collateral Quality: Approximately 64.9% of Sierra 2014-3 consists of WVRI-originated loans; the remainder are WRDC loans. Fitch has determined that, on a like-for-like FICO basis, WRDC’s receivables perform better than WVRI’s. The weighted average (WA) current FICO score of the pool is 716. However, seasoning has declined relative to 2014-2.

Increase in Longer Term Loans: The 2014-3 pool includes approximately 5.0% 15-year loans. This is a notable increase from the 2014-2 transaction, which only had 0.24%. Historically, longer-term loans perform worse than the 10 year loans that represent approximately 95.0% of the pool.

Stabilization in WVRI Performance: Similar to other timeshare originators, Wyndham Worldwide’s delinquency and default performance exhibited notable increases in the 2007 to 2008 vintages. However, WRDC’s performance has improved since 2009 while WVRI continues to experience high defaults. Nonetheless, the 2013 vintage within the WVRI portfolio demonstrates relative stabilization in default performance. Fitch’s cumulative gross default (CGD) proxy for this pool is 19.50%.

Sufficient CE Structure: Initial hard credit enhancement (CE) is expected to be 33.00% and 14.00% for class A and B notes, respectively. Hard CE is composed of overcollateralization (OC), a letter of credit (LOC) reserve account, and subordination. Soft CE is also provided by excess spread and is expected to be 10.14% per annum.

Quality of Origination/Servicing: Wyndham Worldwide has demonstrated sufficient abilities as an originator and servicer of timeshare loans. This is evidenced by the historical delinquency and loss performance of securitized trusts and of the managed portfolio.

Legal Structure Integrity: The legal structure of the transaction should provide that a bankruptcy of Wyndham Worldwide and Wyndham Consumer Finance, Inc. (WCF) would not impair the timeliness of payments on the securities.

RATING SENSITIVITIES

Unanticipated increases in the frequency of defaults could produce cumulative gross default (CGD) levels higher than the base case and would likely result in declines of credit enhancement and remaining default coverage levels available to the notes. Additionally, unanticipated increases in prepayment activity could also result in a decline in coverage. Decreased default coverage may make certain note ratings susceptible to potential negative rating actions, depending on the extent of the decline in coverage.

Thus, Fitch conducts sensitivity analysis stressing both a transaction’s initial base case CGD and prepayment assumptions by 1.5x and 2.0x and examining the rating implications on all classes of issued notes. The 1.5x and 2.0x increases of the base case CGD and prepayment assumptions represent moderate and severe stresses, respectively, and are intended to provide an indication of the rating sensitivity of notes to unexpected deterioration of a trust’s performance.

Key Rating Drivers and Rating Sensitivities are further described in the presale report dated October 23, 2014. Fitch’s analysis of the Representations and Warranties (RW) of this transaction can be found in ‘Sierra Timeshare 2014-3 Receivables Funding LLC – Appendix’. These RWs are compared to those of typical RW for the asset class as detailed in the special report ‘Representations, Warranties, and Enforcement Mechanisms in Global Structured Finance Transactions’ dated April 17, 2012.

The presale report is available to all investors on Fitch’s website at ‘www.fitchratings.com‘. For more information about Fitch’s comprehensive subscription service FitchResearch, which includes all presale reports, surveillance, and credit reports on more than 20 asset classes, contact product sales at +1-212-908-0800 or at ‘webmaster@fitchratings.com’.

Additional information is available at ‘www.fitchratings.com‘.

Applicable Criteria and Related Research:

–’Sierra Timeshare 2014-3 Receivable Funding LLC’ dated Oct. 23, 2014;

–’Sierra Timeshare 2014-3 Receivable Funding LLC–Appendix’ dated Oct. 23, 2014;

–’Criteria for Rating U.S. Timeshare Loan ABS’ dated June 9, 2014;

–’Global Structured Finance Rating Criteria’ dated May 24, 2013;

–’Representations, Warranties, and Enforcement Mechanisms in Global Structured Finance Transactions’ dated April 17, 2012.

Applicable Criteria and Related Research: Sierra Timeshare 2014-3 Receivables Funding LLC (US ABS)

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=797408

Criteria for Rating U.S. Timeshare Loan ABS

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=749780

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=754389

Representations, Warranties, and Enforcement Mechanisms in Global Structured Finance Transactions

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=676496

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=905434

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. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

Article source: http://finance.yahoo.com/news/fitch-expects-rate-sierra-timeshare-140200717.html

Fitch Expects to Rate Sierra Timeshare 2014-3 Receivables Funding LLC

NEW YORK–(BUSINESS WIRE)–

Fitch Ratings assigns the following expected ratings to Sierra Timeshare 2014-2 Receivables Funding LLC:

–$ 255,230,000 class A asset-backed notes ‘Asf’; Outlook Stable;

–$ 69,770,000 class B asset-backed notes ‘BBBsf’; Outlook Stable.

KEY RATING DRIVERS

Stable Collateral Quality: Approximately 64.9% of Sierra 2014-3 consists of WVRI-originated loans; the remainder are WRDC loans. Fitch has determined that, on a like-for-like FICO basis, WRDC’s receivables perform better than WVRI’s. The weighted average (WA) current FICO score of the pool is 716. However, seasoning has declined relative to 2014-2.

Increase in Longer Term Loans: The 2014-3 pool includes approximately 5.0% 15-year loans. This is a notable increase from the 2014-2 transaction, which only had 0.24%. Historically, longer-term loans perform worse than the 10 year loans that represent approximately 95.0% of the pool.

Stabilization in WVRI Performance: Similar to other timeshare originators, Wyndham Worldwide’s delinquency and default performance exhibited notable increases in the 2007 to 2008 vintages. However, WRDC’s performance has improved since 2009 while WVRI continues to experience high defaults. Nonetheless, the 2013 vintage within the WVRI portfolio demonstrates relative stabilization in default performance. Fitch’s cumulative gross default (CGD) proxy for this pool is 19.50%.

Sufficient CE Structure: Initial hard credit enhancement (CE) is expected to be 33.00% and 14.00% for class A and B notes, respectively. Hard CE is composed of overcollateralization (OC), a letter of credit (LOC) reserve account, and subordination. Soft CE is also provided by excess spread and is expected to be 10.14% per annum.

Quality of Origination/Servicing: Wyndham Worldwide has demonstrated sufficient abilities as an originator and servicer of timeshare loans. This is evidenced by the historical delinquency and loss performance of securitized trusts and of the managed portfolio.

Legal Structure Integrity: The legal structure of the transaction should provide that a bankruptcy of Wyndham Worldwide and Wyndham Consumer Finance, Inc. (WCF) would not impair the timeliness of payments on the securities.

RATING SENSITIVITIES

Unanticipated increases in the frequency of defaults could produce cumulative gross default (CGD) levels higher than the base case and would likely result in declines of credit enhancement and remaining default coverage levels available to the notes. Additionally, unanticipated increases in prepayment activity could also result in a decline in coverage. Decreased default coverage may make certain note ratings susceptible to potential negative rating actions, depending on the extent of the decline in coverage.

Thus, Fitch conducts sensitivity analysis stressing both a transaction’s initial base case CGD and prepayment assumptions by 1.5x and 2.0x and examining the rating implications on all classes of issued notes. The 1.5x and 2.0x increases of the base case CGD and prepayment assumptions represent moderate and severe stresses, respectively, and are intended to provide an indication of the rating sensitivity of notes to unexpected deterioration of a trust’s performance.

Key Rating Drivers and Rating Sensitivities are further described in the presale report dated October 23, 2014. Fitch’s analysis of the Representations and Warranties (RW) of this transaction can be found in ‘Sierra Timeshare 2014-3 Receivables Funding LLC – Appendix’. These RWs are compared to those of typical RW for the asset class as detailed in the special report ‘Representations, Warranties, and Enforcement Mechanisms in Global Structured Finance Transactions’ dated April 17, 2012.

The presale report is available to all investors on Fitch’s website at ‘www.fitchratings.com‘. For more information about Fitch’s comprehensive subscription service FitchResearch, which includes all presale reports, surveillance, and credit reports on more than 20 asset classes, contact product sales at +1-212-908-0800 or at ‘webmaster@fitchratings.com’.

Additional information is available at ‘www.fitchratings.com‘.

Applicable Criteria and Related Research:

–’Sierra Timeshare 2014-3 Receivable Funding LLC’ dated Oct. 23, 2014;

–’Sierra Timeshare 2014-3 Receivable Funding LLC–Appendix’ dated Oct. 23, 2014;

–’Criteria for Rating U.S. Timeshare Loan ABS’ dated June 9, 2014;

–’Global Structured Finance Rating Criteria’ dated May 24, 2013;

–’Representations, Warranties, and Enforcement Mechanisms in Global Structured Finance Transactions’ dated April 17, 2012.

Applicable Criteria and Related Research: Sierra Timeshare 2014-3 Receivables Funding LLC (US ABS)

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=797408

Criteria for Rating U.S. Timeshare Loan ABS

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=749780

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=754389

Representations, Warranties, and Enforcement Mechanisms in Global Structured Finance Transactions

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=676496

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=905434

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. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

Article source: http://finance.yahoo.com/news/fitch-expects-rate-sierra-timeshare-140200717.html

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