Fitch said a majority of 'AAAsf' rated U.S. Prime Auto Loan ABS would be able to withstand a recession and serious declines in used-vehicle values.
Prime delinquencies are stable and prime cumulative net losses have improved, but the ratings agency says economic volatility and the European financial crisis could dampen growth prospects.
Rising auto sales are strengthening the already-solid performance of dealer floorplan ABS, Fitch Ratings reports.
In a note to bondholders, Fitch Ratings said it believes the move toward slightly riskier borrowers in prime auto ABS pools is unlikely to present a near-term risk.
Performance remained stellar for U.S. prime auto ABS, with losses dropping to a new record low, according to the latest index results from Fitch Ratings.
Fitch Ratings announced U.S. banks have a chance to foster loan growth via their auto portfolios, as consumer demand and sales of both new and used vehicles increases.
Fitch Ratings said it expects the financial profiles of U.S. automakers and parts suppliers to remain strong in 2012 despite sluggish global economic growth and weaker-than-expected North American light-vehicle demand.
Residuals on U.S. auto lease ABS are still producing substantial gains vs. initial forecasts through third quarter 2011, according to the latest index results from Fitch Ratings.
Rising gas prices are likely to have a limited impact on U.S. auto loan and lease asset-back securities (ABS) performance, particularly compared to 2008 — when the price of regular grade gasoline spiked to nearly $4.15 a gallon, according to Fitch Ratings.
Lower than expected losses for 2009 U.S. prime auto ABS loans are positioning this vintage for continued positive rating performance as the broader economy slowly improves, according to Fitch Ratings.
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