NEW YORK--(BUSINESS WIRE)--Fitch Ratings assigns ratings and Outlooks to Ally Auto Receivables Trust 2013-1 as follows:
--$377,000,000 class A-2 'AAAsf'; Outlook Stable;
--$377,000,000 class A-3 'AAAsf'; Outlook Stable;
--$147,340,000 class A-4 'AAAsf'; Outlook Stable;
--$37,780,000 class B 'AAsf'; Outlook Stable;
--$25,190,000 class C 'Asf'; Outlook Stable;
--$12,590,000 class D 'BBBsf'; Outlook Stable.
KEY RATING DRIVERS AND RATING SENSITIVITIES
Collateral Quality: Collateral for the pool is slightly weaker than recent transactions with a slightly lower WA FICO and credit-tier distributions. The pool has the highest concentration of 61+ month loans to date, more used vehicles, and a higher WA loan-to-value (LTV) ratio and truck concentration but is geographically diverse.
Credit Enhancement: Initial credit enhancement (CE) is unchanged from 2012-5. However, target CE declined by 0.50%. CE comprises subordination, a reserve account (0.25%), and overcollateralization (OC; 0.20%, initially growing to 0.50%). CE for the class A notes totals 6.45%.
Strong Portfolio/Securitization Performance: Losses and delinquencies on Ally's portfolio and securitizations have been low to date for the 2009-2012 versus the weaker 2006?2008 vintages.
Consistent Origination/Underwriting/Servicing: Fitch currently rates Ally 'BB-' and the rating is currently on Rating Watch Negative. Ally demonstrates solid capabilities as an originator, underwriter, and servicer, as evidenced by its historical portfolio and securitization performance. Fitch deems Ally capable to adequately service 2013-1.
Legal Structure Integrity: The legal structure of the transaction should provide that a bankruptcy of Ally would not impair the timeliness of payments on the securities.
Fitch's stress and rating sensitivity analysis are discussed in the March 28 presale report 'Ally Auto Receivables Trust 2013-1', available at 'www.fitchratings.com' or by clicking on the link at the end of the press release.
Additional information is available at 'www.fitchratings.com'. The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has been compensated for the provision of the ratings.
Applicable Criteria and Related Research:
--'Ally Auto Receivables Trust 2013-1' (March 28, 2013);
--'Rating Criteria for U.S. Auto Loan ABS' (April 16, 2012);
--'Global Structured Finance Rating Criteria' (June 6, 2012).
Applicable Criteria and Related Research
Ally Auto Receivables Trust 2013-1 (US ABS)
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=702450
Rating Criteria for U.S. Auto Loan ABS
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=674859
Global Structured Finance Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=679923
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