Fitch Places 2 Classes in Captec Franchise Loan Receivables Trust 1998-1 on Watch...

Fitch Places 2 Classes in Captec Franchise Loan Receivables Trust 1998-1 on Watch Negative

CHICAGO--(Business Wire)--
Fitch Ratings has placed the following classes in Captec Franchise
Loan Receivables Trust 1998-1 on Rating Watch Negative:

--Class A-3 rated 'BBB';

--Class B rated 'B/DR1'.

The Rating Watch Negative placements are due to a large obligor
within the transaction recently filing for Chapter 7 bankruptcy.
Currently, the defaulted obligor represents 20% of the 1998-1 pool.
The bankruptcy proceedings are in their early stages, and limited
information is available as to potential recoveries and the resulting
impact on the transaction. As bankruptcy proceedings continue and the
collateral sites are marketed and sold, Fitch expects to have a better
expectation as to the severity of potential losses on the outstanding
loan balances. This information will be instrumental in Fitch's review
of the rating watch status on the affected classes.

Fitch's rating definitions and the terms of use of such ratings
are available on the agency's public site, 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, Chicago
Juveria Mozaffar, 312-606-2335
Bradley Sohl, 312-368-3127
or
Media Relations:
Sandro Scenga, 212-908-0278, New York

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