Fitch Takes Various Actions on GE Equipment Small Ticket LLC Series 2011-2 and 2012-1

Fitch Ratings takes the following rating actions on GE Equipment Small Ticket L.L.C. Series 2011-2 (GE EST 2011-2) and 2012-1 (GE EST 2012-1):

GE EST 2011-2

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

--Class B affirmed at 'AAAsf' Outlook Stable;

--Class C affirmed at 'AAAsf' Outlook Stable;

--Class D upgraded to 'AAsf' from 'Asf'; Outlook Positive.

GE EST 2012-1

--Class A-3 affirmed at 'AAAsf' Outlook Stable;

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

--Class B affirmed at 'AAAsf' Outlook Stable;

--Class C upgraded to 'AAAsf' from 'AAsf', Outlook to Stable from Positive;

--Class D upgraded to 'AAsf' from 'Asf'; Outlook Positive.

KEY RATING DRIVERS

The upgrades of the class D notes in 2011-2 and the class C and D notes in 2012-1 reflect the strong performance to date with cumulative net losses tracking inside of Fitch's initial expectations for both transactions. Furthermore, loss coverage has improved due to increasing credit enhancement and is consistent with the ratings. The affirmation of class A, B, C notes in 2011-2 and the class A and B notes in 2012-1 reflect the net loss coverage levels consistent with their 'AAAsf' ratings.

The Positive Outlooks for class D in both transactions reflect the possibility for positive rating actions in the next 12 to 18 months as losses are tracking inside of initial expectations and credit support is expected to continue to increase for both transactions. Fitch will continue to closely monitor these transactions and may take additional rating actions in the event of changes in performance and credit enhancement measures.

RATING SENSITIVITIES

Unanticipated increases in the frequency of defaults and loss severity could produce loss levels higher than the current projected base case loss proxies which would 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 transactions, the notes were found to have limited sensitivity to 1.5x and 2.5x higher of Fitch's base case loss expectations. Initial Key Rating Drivers and Rating Sensitivities are further described in the GE EST 2011-2's new issue report published Nov. 14, 2011 and GE EST 2012-1's new issue report published May 21, 2012.

To date, the transactions have exhibited strong performance with losses within Fitch's initial expectations with rising loss coverage and multiple levels. As such, continued strong performance for these transactions would most likely result in stable to positive ratings. Conversely, low residual realization rates and deterioration in loss performance have the potential to cause a negative impact on the outstanding ratings.

Fitch's analysis of the Representations and Warranties (R&W) of these transactions can be found in 'GE Equipment Small Ticket, L.L.C Series 2011-2 - Appendix' and 'GE Equipment Small Ticket, L.L.C Series 2012-1 - Appendix'. These 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 Global Structured Finance Transactions' dated Oct. 31, 2014.

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

Applicable Criteria and Related Research:

--'Criteria for Rating U.S. Equipment Lease and Loan ABS' dated Dec. 23, 2014;

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

--'Representations, Warranties, and Enforcement Mechanisms in Global Structured Finance Transactions' dated Oct. 31, 2014;

--'GE Equipment Small Ticket, L.L.C Series 2011-2' dated Nov. 14, 2011;

--'GE Equipment Small Ticket, L.L.C Series 2011-2 - Appendix' dated Nov. 14, 2011;

--'GE Equipment Small Ticket, L.L.C Series 2012-1' dated March 3, 2014;

--'GE Equipment Small Ticket, L.L.C Series 2012-1 - Appendix' March 3, 2014.

Applicable Criteria and Related Research:

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

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

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=830328

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=966875

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