Press Release
August 7, 2001
NEW YORK, NY -- Fitch rates Fairfield Funding Corporation, III, series 2001-1's $133,849,000 class A notes `AAA',
$26,302,000 class B notes `AA', $25,133,000 class C notes `A' and $28,056,000 class D notes `BBB'.
The notes backed are by a pool of timeshare mortgage loans and installment sale contracts for deed.
Fairfield Acceptance Corporation (FAC), a wholly owned subsidiary of Fairfield Resorts, Inc. (FRI), is the servicer
for the transaction. FRI, formerly Fairfield Communities, Inc., acquires and develops timeshare resorts, markets
and sells vacation properties in its resorts, and finances the purchase and manages the day-to-day operations of
timeshare resorts. FRI is a wholly owned subsidiary of Cendant Corporation (BBB+).
Credit enhancement was determined by running nine scenarios for each class of notes through a cash flow model that
reflects the securitization structure and is used to determine the break-even point of each class of notes. Each
scenario is based on assumptions concerning expected cumulative gross defaults, default distribution, prepayments,
and recoveries. Credit enhancement is made up of overcollateralization, subordination and a reserve account.
The following are credit strengths for the ratings:
FRI's 22 years of experience in the vacation ownership industry;
Cendant's senior unsecured rating of `BBB+';
The historical performance of FRI's static pools; and,
Credit enhancement is sufficient to cover historical static pool cumulative gross defaults at 4 times (x) for `AAA',
3.5x for `AA', 3x for `A', and 2.5x for `BBB'.
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Contact:
Fitch, New York
Joseph L. Labbadia, 212/908-0361
Sean P. Sheerin, 212/908-0247
Adam Kaplan, 212/908-0830