Fitch Ratings upgrades the following Marriott Vacation Club Trust transaction as outlined below.
Marriott Vacation Club Trust 2002-1
-- Class B notes upgraded to 'AAA' from 'AA';
-- Class C notes upgraded to 'AA' from 'A';
-- Class D notes upgraded to 'A' from 'BBB'.
In addition, Fitch affirms the following classes:
-- Class A-1 notes at 'AAA';
-- Class A-2 notes at 'AAA'.
In its review of Marriott Vacation Club Trust 2002-1, Fitch noted that collateral performance on the portfolio has exceeded Fitch's expectations. As of July 31, 2006, 61+ day delinquencies were 1.12% and cumulative defaults had reached 6.05%, both within Fitch's expectations. Credit enhancement consists of a combination of subordination and a reserve account. Enhancement has been relatively static over the life of this transaction, but has nominally grown as a percentage, since the reserve account hit its floor of $2,500,000. Fitch also noted substantial amounts of excess spread to protect against future losses
Fitch will continue to monitor this transaction and may take additional rating action as warranted by future performance.