Fitch Affirms BMW Floorplan Master Owner Trust 2012-1

Business Wire

CHICAGO--(BUSINESS WIRE)--

Fitch Ratings has affirmed the following outstanding notes issued by BMW Floorplan Master Owner Trust (BMW FMOT) as a result of its annual review of the trust.

Series 2012-1: Class A at 'AAAsf'/Outlook Stable.

KEY RATING DRIVERS

The affirmation on the notes is reflective of the available loss coverage and stable performance consistent with the current ratings. The trust continues to perform within Fitch's expectations.

The rating actions are based on the application of Fitch's global dealer floorplan (DFP) ABS criteria, and the breakeven net loss coverage levels provided by the structure's credit enhancement, which is currently comprised of subordination that includes an unrated certificate and a cash reserve account. Fitch's review of the assumptions and stresses during the initial rating review and the current coverage levels, provided by the credit enhancement, is consistent with the approach outlined in the criteria for Category B DFP platforms, which BMW FMOT is assigned as.

The assets securing the notes consist of an undivided interest in a pool of revolving DFP receivables that were originated by B and are utilized to provide wholesale financing to U.S. automotive dealers of BMW AG, MINI, and other original automobile manufacturers.

Fitch will continue to monitor BMW FMOT and may take additional rating action in the event of changes in performance and/or credit enhancement.

RATING SENSITIVITY

To conduct rating sensitivity for the issued notes, under a category A DFP platform, Fitch assumes portfolio default levels at 5%, 10%, and 15%, and under two recovery-level scenarios of 50% and 30%. Fitch modeled this series with the assumption that the above defaults have occurred, reflecting asset performance in a stressed environment. However, to date, performance for the trust has remained strong. A material deterioration would have to occur in performance to have a potential negative impact on ratings. Please refer to the transaction's presale report for further detail, which is titled 'BMW Floorplan Master Owner Trust 2012-1', dated Sept. 10, 2012.

Individual Representations, Warranties, and Enforcement Mechanisms reports are available for all structured finance transactions initially rated on or after Sept. 26, 2011 at www.fitchratings.com.

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

Applicable Criteria and Related Research:

--'Global Rating Criteria for Dealer Floorplan ABS' (Jan. 22, 2013);

--'Global Structured Finance Rating Criteria' (May 24, 2013).

Applicable Criteria and Related Research:

Global Rating Criteria for Dealer Floorplan ABS

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=698609

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=708661

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=801096

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Contact:
Fitch Ratings
Primary Analyst
Juveria Mozaffar
Director
+1-312-606-2335
Fitch Ratings, Inc.
70 W. Madison Street
Chicago, IL 60602
or
Committee Chairperson
Brad Sohl
Senior Director
+1-312-368-3127
or
Media Relations:
Sandro Scenga, New York, +1 212-908-0278
Email: sandro.scenga@fitchratings.com

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