Fitch Ratings has affirmed NIF-T Series 2010-1 as follows:
--Class A-2 notes at 'AAAsf'; Outlook Stable.
KEY RATING DRIVERS
The affirmation reflects the increase in credit enhancement since the prior review and strong collateral performance. Credit and residual losses have been well within Fitch's expectations to date. The Stable Outlook reflects Fitch's expectation that the notes will remain sufficiently enhanced to cover 'AAAsf' stressed loss levels.
Fitch will continue to monitor economic conditions and their impact as well as trust level performance variables and update the ratings accordingly.
Unanticipated increases in the frequency of defaults or deterioration in vehicle values could produce loss levels higher than the current expectations and impact available loss coverage. 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 and 2.5x increase of Fitch's base case default expectation. For further detail on the rating sensitivity analysis, please refer to Fitch's presale titled 'NIF-T Series 2010-1 (Canada ABS)' available at 'www.fitchratings.com'.
To date, the transaction has exhibited strong credit and residual performance, well within Fitch's initial expectations with rising loss coverage. Despite the growth in credit enhancement to date, the residual portion of the transaction continues to become a larger percentage of the securitization value. As a result, the transaction continues to be sensitive to fluctuations in residual values. A material deterioration in vehicle values could potentially have a negative impact on the outstanding ratings.
Additional information is available at 'www.fitchratings.com'. The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has been compensated for the provision of the ratings.
The information used to assess these ratings was sourced from the issuer, periodic trustee reports, note valuation reports, and the public domain.
Applicable Criteria and Related Research:
--'Criteria for Rating U.S. Auto Lease ABS' dated May 14, 2012;
--'Global Structured Finance Rating Criteria' dated June 6, 2012.
--'Representations, Warranties, and Enforcement Mechanisms in Global Structured Finance Transactions' dated April 17, 2012;
--'NIF-T Series 2010-1 (Canada ABS)' dated April 10, 2010.
Applicable Criteria and Related Research
Representations, Warranties, and Enforcement Mechanisms in Global Structured Finance Transactions -- Amended
NIF-T Series 2010-1 (Canada ABS)
Criteria for Rating U.S. Auto Lease ABS
Global Structured Finance Rating Criteria