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Fitch Affirms CNL Funding 1999-1 LP; Revises Outlooks

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CHICAGO--(BUSINESS WIRE)--

Fitch Ratings has affirmed the following classes of CNL Funding 1999-1 LP and revised Rating Outlooks as indicated:

--Class A-2 at 'Asf'; Outlook Stable;

--Class B at 'A-sf'; Outlook to Negative from Stable;

--Class C at 'BBB+sf'; Outlook to Negative from Stable;

--Class D at BBBsf'; Outlook to Negative from Stable;

The affirmations reflect the performance to date, growing credit enhancement levels, and ability to pass stress case scenarios consistent with the current rating. The Stable Outlook on class A-2 reflects Fitch's expectation for rating stability in the next 12-18 months.

The Negative Outlooks on classes B, C, and D are due to growing obligor concentrations as the two largest borrowers comprise almost 50% of the remaining pool and are expected to continue increasing. If credit enhancement growth continues to outpace that of the obligor concentration, the Outlooks may be revised to Stable. However, the increasing concentration may warrant a further rating actions in the future.

Fitch will continue to monitor the transaction and may take additional rating actions in the event of changes in performance and credit enhancement measures.

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:

--'Surveillance Criteria for Franchise Loan ABS' dated May 10, 2012;

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

Applicable Criteria and Related Research:

Surveillance Criteria for Franchise Loan ABS

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=678776

Global Structured Finance Rating Criteria

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

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Fitch Ratings
Primary Analyst
Thomas Kaiser, CPA
Analyst
+1-312-368-3338
Fitch, Inc.
70 West Madison St.
Chicago, IL 60602
or
Committee Chairperson
Du Trieu
Senior Director
+1-312-368-2091
or
Media Relations:
Sandro Scenga, +1-212-908-0278 (New York)
sandro.scenga@fitchratings.com















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