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Fitch Affirms Sierra Timeshare 2011-3 Receivables Funding LLC

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CHICAGO--(BUSINESS WIRE)--

Fitch Ratings has affirmed the Sierra Timeshare 2011-3 Receivables Funding LLC (Sierra 2011-3) notes as follows:

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

--Class B notes at 'BBBsf'; Outlook Stable;

--Class C notes at 'BBsf'; Outlook Stable.

The rating affirmations reflect the ability of the transaction's credit enhancement to provide loss coverage consistent with the current rating. The Stable Outlook reflects Fitch's expectation that the notes will remain sufficiently enhanced to cover the 'Asf' stressed loss levels for the next 12 to 18 months.

It is important to note that default performance is above Fitch's initial expectations. However, due to the delevering structure of the transaction, enhancement is adequate to support the higher default pace.

Fitch will continue to monitor economic conditions and their impact as they relate to timeshare asset-backed securities and the trust level performance variables and update the ratings accordingly.

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.

The information used to assess these ratings was sourced from the issuer, periodic trustee reports, note valuation reports, and the public domain.

Applicable Criteria and Related Research:

--'Criteria for Rating U.S. Timeshare Loan ABS' dated June 13, 2012;

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

Applicable Criteria and Related Research:

Criteria for Rating U.S. Timeshare Loan ABS

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=680616

Global Structured Finance Rating Criteria

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

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Fitch Ratings
Surveillance Analyst
Margaret Rowe, +1-312-368-3167
Associate Director
Fitch, Inc.
70 West Madison St.
Chicago, IL 60602
or
Committee Chairperson
Du Trieu, +1-312-368-2091
Senior Director
or
Media Relations
Sandro Scenga, New York, +1-212-908-0278
sandro.scenga@fitchratings.com

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