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TIMESHARE DELINQUENCIES ON THE RISE

The Reuters business wire reported that according to the latest Timeshare ABS index report,
issued on a quarterly basis by Fitch Ratings, U.S. timeshare delinquencies went up over the last
three months of 2011, although it was at the rate that was consistent with the same trend in the
final months of 2010.

Fitch Ratings are a part of the Fitch Group, headquartered in Paris and dual-headquartered in
New York and London. The ratings firm has 51 offices worldwide. Fitch Ratings is a global
ratings agency that provides ratings through independent and prospective credit opinions,
research and data. Fitch Ratings was one of the three Nationally Recognized Statistical Rating
Organizations designated by the U.S. Securities and Exchange Commission in 1975, along with
Moody’s and Standard & Poor’s.

The Fitch Ratings of the U.S. timeshare industry were released on Monday, March 5. The
sluggish nature of the industry is considered to be typical of the so-called winter blues, since
historically, delinquencies in the vacation ownership industry tend to rise on a seasonal basis,
particularly during the winter months.

Despite that, Fitch noted that the ratings agency expects near-term stability for both timeshare
ABS performance and its ratings.

The total number of U.S. timeshare delinquencies for the fourth quarter of 2011 went up by 3.82
percent, which was higher than the 3.56 percent jump this industry had in the third quarter of last
year.

“This reflects the seasonal deterioration that takes hold in the winter months,” Reuters noted in
its article.

In a comparison between the fourth quarter of 2011 and the fourth quarter of 2010, total
delinquencies were actually a tiny bit higher in 4Q 2010 -- 3.85 percent. That’s actual a good
sign for an industry battered when the national recession began in 2008.

Fitch Ratings noted that timeshare loan delinquencies appear to have settled back to historical
levels after soaring to all time highs in 2008 and 2009, as the economy was plunging into
recession.

There was another factor in the report that remains consistent with these seasonal trends, Fitch
noted. Defaults for the final months of 2011 increased to 0.75 percent from 0.62 percent in the
third quarter of 2011. But unlike delinquencies, defaults actually went up in the year-over-year
analysis -- 0.62 percent higher in the final months of 2011, compared to the same time frame in
late 2010.

Fitch's Rating Outlook for Timeshare ABS remains stable. Fitch creates the timeshare ABS
index through an aggregation of performance statistics on pools of securitized timeshare loans
that come from numerous industry developers.



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