Fitch Revises Orange Lake 2006-A's Outlook to Stable; Affirms Ratings

CHICAGO--(BUSINESS WIRE)-- Fitch Ratings has affirmed the Orange Lake Timeshare Trust 2006-A (OLTT 2006-A) notes and revised the Rating Outlook as follows:

--Class A notes at 'AAsf', Outlook to Stable from Negative;

--Class B notes at 'Asf', Outlook to Stable from Negative;

--Class C notes at 'BBBsf', Outlook to Stable from Negative.

OLTT 2006-A was initially subject to an 18-month replenishment period, during which additional collateral was purchased by the trust, subject to certain requirements. The transaction began to amortize in April 2008.

Since close, gross default performance on the trust has exceeded Fitch's initial expectations. However, as the seller has actively exercised its option to substitute and repurchase defaulted loans, credit enhancement levels have increased nominally. Additionally, there have recently been signs of slowing in cumulative gross losses.

The affirmations reflect each class of notes' ability to pass stress case scenarios consistent with the current rating levels.

Fitch has revised the Rating Outlook on the notes to Stable from Negative to reflect Fitch's expectation that the notes will remain sufficiently enhanced to cover the 'AAsf', 'Asf', and 'BBBsf' stressed loss levels for the next 12 to 18 months.

Fitch will continue to monitor economic conditions and their impact as they relate to timeshare asset-backed securities and the trust level performance variables and update the ratings accordingly.

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. Timeshare Loan ABS' dated June 13, 2012;

--'Global Structured Finance Rating Criteria' dated June 6, 2012.

Applicable Criteria and Related Research:

Criteria for Rating U.S. Timeshare Loan ABS

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=680616

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=679923

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Fitch Ratings
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Margaret Rowe, [phone]
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Source: Fitch Ratings