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Fitch: Profitable Dealerships Elevate Floorplan ABS

May 29, 2012

NEW YORK-- Rising U.S. new and used auto sales boosted dealership profits in 2012 and are strengthening already-solid performance of dealer floorplan ABS, Fitch Ratings reported recently.

Dealer floorplan asset performance has been solid this year, with most trust performance metrics at some of the strongest levels seen in the sector. Monthly payment rates (MPR) are elevated above historical levels, aging dealer inventory is at low levels, and dealer defaults are at record lows for most of the trusts.

Given the favorable conditions currently supporting U.S. auto dealership networks, Fitch's outlook for both asset and ratings performance in 2012 is stable.

The report also discussed the health of U.S. auto dealerships in 2012, including sales levels, expenses, and profitability. The report also detailed other financial dealer metrics and overall industry health.

Fitch currently rates 15 outstanding dealer floorplan trust series totaling $10.6 billion issued from the two auto-related dealer floorplan trusts and two non-auto/diversified product trusts: Ford Credit Floorplan Master Owner Trust A (FCFMOT), sponsored and serviced by Ford Motor Credit Company (FMCC); Ally Master Owner Trust (AMOT), sponsored by Ally Bank (ally) and serviced by Ally Financial Inc. (Ally Financial); GE Dealer Floorplan Master Note Trust (GE DFMNT), sponsored by General Electric Commercial Distribution Finance (GE CDF) and serviced by General Electric Capital Corp. (GECC); and CNH Wholesale Master Note Trust (CNH WMNT), sponsored and serviced by CNH Capital America LLC (CNH Capital), a subsidiary of Fiat Industrial S.p.A.

Click here to view the full report.

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