Fitch Expects to Rate MMAF Equipment Finance LLC 2012-A; Presale Issued

CHICAGO--(BUSINESS WIRE)-- Fitch Ratings expects to assign the following ratings and Outlooks to the class A notes issued by MMAF Equipment Finance LLC 2012-A:

--$144,000,000 class A-1 notes 'F1+sf';

--$151,000,000 class A-2 notes 'AAAsf;' Outlook Stable;

--$180,000,000 class A-3 notes 'AAAsf'; Outlook Stable;

--$147,000,000 class A-4 notes 'AAAsf;' Outlook Stable;

--$83,400,000 class A-5 notes 'AAAsf'; Outlook Stable.

The presale report is available to all investors on Fitch's website at 'www.fitchratings.com'.

Key Rating Drivers:

Strong Credit Quality and Diversification: 2012-A is backed by mostly investment-grade obligors (72.29% of the pool with the U.S. government totaling 13.06%), comprises over 15 equipment types in over 20 industries, and is geographically diverse.

Consistent Portfolio Diversification: Obligor, industry, equipment type, and geographic concentrations in 2012-A are consistent with 2011-A. The top obligor totals 13.06% of the pool, slightly down from 13.75% in 2011-A. The top equipment type, transportation, increased marginally in 2012-A to 26.66% from 24.25% in 2011-A.

Strong Performance: MMAF's portfolio and securitizations have performed well, with virtually no delinquencies and 0% losses to date, along with a 0% turn-in rate and consistent residual realization rates over 100%, with all equipment sold to lessees to date.

Sufficient Enhancement: 2012-A has 11.00% total hard credit enhancement (CE) for the class A notes, 25 bps higher than 2011-A, and initial excess spread (XS) totals approximately 0.80%. CE is sufficient to support the loss coverage levels consistent with the expected ratings.

Quality Underwriting and Servicing Platform: MMAF mostly does not originate contracts but purchases them from approved syndicators. However, MMAF demonstrates adequate abilities as an underwriter and servicer, as evidenced by historical performance of their securitizations and managed portfolio. Portfolio Financing Services Company (PFSC) is the sub/backup servicer for 2012-A.

Strong Parent: Fitch rates Massachusetts Mutual Life Insurance Company (MassMutual), MMAF's parent, 'AA/F1+' with a Stable Rating Outlook. Babson Capital Management LLC (Babson) is the performance guarantor for 2012-A, and manages MMAF's operations actively.

Integrity of Legal Structure: The legal structure of the transaction provides that a bankruptcy of MMAF would not impair the timeliness of payments on the securities.

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 '[email protected]'.

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.

Applicable Criteria and Related Research:

--'Global Structured Finance Rating Criteria' (Aug. 4, 2011);

--'Global Rating Criteria for Corporate CDOs' (Aug. 10, 2011);

--'Criteria for Rating US Equipment Lease and Loan ABS' (Jan. 11, 2012

Applicable Criteria and Related Research: MMAF Equipment Finance LLC Series 2012-A (US ABS)

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=681202

Global Structured Finance Rating Criteria

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

Global Rating Criteria for Corporate CDOs

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=641789

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

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=663732

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 Ratings
Primary AnalystMargaret MyersAssociate Director
+1-312-368-3167
Fitch, Inc.
70 W. Madison Street
Chicago, IL 60602
orHylton HeardSenior Director
+1-212-908-0214
or
Committee ChairpersonBradley Sohl+1-312-368-3127
or
Media RelationsSandro Scenga+1-212-908-0278
[email protected]

Source: Fitch Ratings