Linc Capital, an equipment leasing specialty finance company, reported a $13.3 million loss for the second quarter and "significant defaults of certain covenants under its loan and securitization agreements," which could potentially trigger a ratings action by Fitch on the subordinated tranches of Linc's 1999 securitization, sources said.

The senior, A-class tranche, which is insured by Ambac Assurance Corp., is not likely to be affected. The rating agency is awaiting the servicer report, which it should receive by the end of the month, a source said.

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