OREANDA-NEWS. Fitch Ratings has upgraded E-Carat S. A., Compartment 7's (E-Carat 7) class B notes and affirmed the class A notes, as follows:

EUR143.7m class A notes: affirmed at 'AAAsf'; Stable Outlook

EUR12.4m class B notes: upgraded to 'AAAsf' from 'AAsf'; Stable Outlook

The transaction is a securitisation of German auto loans originated by Opel Bank GmbH (formerly GMAC Bank GmbH; BBB-/Positive/F3). The transaction has been amortising from the issue date in August 2014. The notes amortise sequentially.

KEY RATING DRIVERS

The rating actions reflect the portfolio's solid performance since issuance and the increase in credit enhancement as a result of the quick portfolio amortisation. Other comparable E-Carat deals perform in line with Compartment 7.

The stable labour market in Germany with a moderate unemployment rate supports our expectation of a limited increase in defaults (cumulative defaults to date stand at 0.32%). Furthermore, the transaction has been reporting low delinquencies (30+ days at 0.37%) and strong recoveries. The reported defaults and losses are lower than Fitch's initial expectations.

The portfolio amortised down to EUR164.8m as of the May 2016 investor report from the original amount of EUR355.2m. The portfolio's composition has remained largely unchanged over this period, with the exception of a slight increase in balloon loans to 86.7% from 79.9%. This is due to the relatively slower amortisation of this loan type compared with amortising loans.

Fitch has revised its lifetime default base case for the transaction to 1.15% from 1.70% and increased the recovery base case to 65.0% from 62.5%.

RATING SENSITIVITIES

Expected impact upon the note rating of increased defaults and reduced recoveries (class A/B):

Current Ratings: 'AAAsf'/'AAAsf'

Increase base case defaults and reduce base case recoveries by 25%: 'AAAsf'/'AAAsf'

DUE DILIGENCE USAGE

No third party due diligence was provided or reviewed in relation to this rating action.

DATA ADEQUACY

Fitch has checked the consistency and plausibility of the information it has received about the performance of the asset pool and the transaction. There were no findings that were material to this analysis. Fitch has not reviewed the results of any third party assessment of the asset portfolio information or conducted a review of origination files as part of its ongoing monitoring.

Prior to the transaction closing, Fitch reviewed the results of a third party assessment conducted on the asset portfolio information, which indicated no adverse findings material to the rating analysis.

Prior to the transaction closing, Fitch conducted a review of a small targeted sample of the origination files and found the information contained in the reviewed files to be adequately consistent with the originator's policies and practices and the other information provided to the agency about the asset portfolio.

Overall Fitch's assessment of the information relied upon for the agency's rating analysis according to its applicable rating methodologies indicates that it is adequately reliable.

SOURCES OF INFORMATION

The information below was used in the analysis.

-Monthly Investor Report provided by GMAC UK plc as at end-May 2016

-Loan level data from the European Data Warehouse (Edwin) as at end-April 2016

MODELS

The Fitch Granular Asset Loss Analyser (GALA Model) was used in the analysis. Click on the link for a description of the model.

Https://www. fitchratings. com/site/structuredfinance/abs/gala

REPRESENTATIONS AND WARRANTIES

A comparison of the transaction's Representations, Warranties & Enforcement Mechanisms to those typical for the asset class is available by accessing the appendix that accompanies the initial new issue report (see E-CARAT S. A, Compartment 7 - Appendix, dated 18 August 2014 at www. fitchratings. com). In addition refer to the special report "Representations, Warranties, and Enforcement Mechanisms in Global Structured Finance Transactions" dated 31 May 2016 and available on the Fitch website.