Industry Press Releases

Fitch Affirms 3 Classes of Harley-Davidson Motorcycle Trust 2011-2

Tuesday, Dec 23, 2014
Pressreleases

NEW YORK--(BUSINESS WIRE)-- Fitch Ratings has affirmed three classes of the Harley-Davidson Motorcycle Trust 2011-2 transaction as follows:

--Class A-4 'AAAsf'; Outlook Stable;

--Class B 'AAAsf'; Outlook Stable;

--Class C 'AAAsf'; Outlook Stable.

KEY RATING DRIVERS

The collateral pool continues to perform well within Fitch's initial expectations, with cumulative net losses currently at 1.78%. The affirmations of the class A-4, B and C notes reflect loss coverage levels consistent with their current ratings.

The ratings also reflect the quality of Harley-Davidson Financial Services' retail motorcycle loan originations, the strength of its servicing capabilities, and the sound financial and legal structure of the transaction.

RATING SENSITIVITY

Unanticipated increases in the frequency of defaults and loss severity could produce loss levels higher than the current projected base case loss proxy and impact available loss coverage and multiple levels for the transaction. Lower loss coverage could impact ratings and Rating Outlooks, depending on the extent of the decline in coverage.

In Fitch's initial review of the transaction, the notes were found to have limited sensitivity to a 1.5x increase of Fitch's base case loss expectation and moderate sensitivity to a 2.5x increase. To date, the transaction has exhibited solid performance with losses well within Fitch's initial expectations. In addition, increasing credit enhancement levels has resulted in rising loss coverage and multiples. As such, a strong material deterioration in performance would have to occur within the asset pools to have potential negative impact on the outstanding ratings.

Fitch's analysis of the Representation and Warranties (R&W) of 2011-2 can be found in 'Harley-Davidson Motorcycle Trust 2011-2 -- Appendix'. The R&W are compared to those of typical R&W for the asset class as detailed in the special report 'Representations, Warranties, and Enforcement Mechanisms in the Global Structured Finance Transactions' dated Oct. 31, 2014.

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

Applicable Criteria and Related Research:

--'Rating Criteria for U.S. Auto Loan ABS', dated April 7, 2014;

--'Global Structured Finance Rating Criteria', dated Aug. 4, 2014;

--'Representations, Warranties and Enforcement Mechanisms in Global Structured Finance Transactions', dated Dec. 23, 2014;

--'Harley-Davidson Motorcycle Trust 2011-2 -- Appendix'(Oct. 31, 2011).

Applicable Criteria and Related Research:

Rating Criteria for U.S. Auto Loan ABS

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=738718

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=799248

Harley-Davidson Motorcycle Trust 2011-2 -- Appendix

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=655051

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=961596

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