Fitch to Rate Nissan Auto Receivables 2013-C Owner Trust; Issues Presale

0

NEW YORK–(BUSINESS WIRE)–

Link to Fitch Ratings’ Report: Nissan Auto Receivables 2013-C Owner Trust (US ABS)

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=725279

Fitch Ratings expects to assign the following ratings and Rating Outlooks to the notes issued by Nissan Auto Receivables 2013-C Owner Trust listed below:

–$158,000,000 class A-1 ‘F1+sf’;

–$222,000,000 class A-2 ‘AAAsf’; Outlook Stable;

–$336,000,000 class A-3 ‘AAAsf’; Outlook Stable;

–$84,000,000 class A-4 ‘AAAsf’; Outlook Stable;

Key Rating Drivers

Consistent Collateral Pool: The collateral composition and credit quality of 2013-C is generally consistent with prior pools. The WA Fair Isaac Corp. (FICO) score is 758, new vehicles total 96.36%, Nissan brand vehicles represent 95.54% and the pool is geographically diverse.

Extended Term Loans: Loans with terms of more than 60 months have increased to 49.03% (the highest level seen to date) and include 4.09% of loans with 73-75 month original terms. This is the first NAROT transaction to include loans with 73-75 month loan terms.

Sufficient Enhancement: 2013-C incorporates a sequential-pay structure and initial hard credit enhancement (CE) totals 4.25%, consistent with recent transactions. Overall CE is sufficient to cover Fitch’s ‘AAAsf’-stressed lifetime cumulative net loss (CNL) assumption.

Stable Portfolio/Securitization Performance: NMAC portfolio and securitization delinquencies and losses have declined from peak levels in 2009, and have since stabilized at lower levels.

Stable Origination, Underwriting and Servicing Platform: Fitch believes NMAC demonstrates adequate abilities as originator, underwriter and servicer for 2013-C.

Unstable Economic Outlook: A slower recovery and potential for volatility could affect delinquencies and losses. Fitch’s analysis accounts for this risk by including poorer performing vintages from the recent recession in the base case loss analysis.

Integrity of Legal Structure: The legal structure of a transaction should provide that a bankruptcy of NMAC would not impair the timeliness of payments on the securities.

Rating Sensitivities

Unanticipated increases in the frequency of defaults and loss severity on defaulted receivables could produce loss levels higher than the base case. In turn, it could result in potentially adverse rating actions on the notes. Fitch evaluated the sensitivity of the ratings assigned to all classes of Nissan Auto Receivables 2013-C Owner Trust to increased losses over the life of the transaction. Fitch’s analysis found that the notes display some sensitivity to increased defaults and losses. In fact, they could lead to potential downgrades of up to one category under Fitch’s moderate (1.5x base case loss) scenario. The notes could experience downgrades of up to two rating categories under Fitch’s severe (2.5x base case loss) scenario.

Key Rating Drivers and Rating Sensitivities are further described in Fitch’s presale report, available at ‘www.fitchratings.com‘ or by clicking on the above link.

Additional information is available at www.fitchratings.com.

Applicable Criteria and Related Research:

–‘Global Structured Finance Rating Criteria’ (May 24, 2013);

–‘Rating Criteria for U.S. Auto Loan ABS’ (April 10 2013);

–‘Structured Finance Tranche Thickness Metrics’ (July 29, 2011).

–‘Nissan Auto Receivables 2013-C Owner Trust Appendix’ (Dec. 3, 2013).

Applicable Criteria and Related Research:

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=708661

Rating Criteria for U.S. Auto Loan ABS

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=704137

Structured Finance Tranche Thickness Metrics

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=646951

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=810318

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY’S PUBLIC WEBSITE ‘WWW.FITCHRATINGS.COM‘. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH’S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE ‘CODE OF CONDUCT’ SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

DrivePulse is your source for new car reviews, research, ratings, used car research and the latest industry automotive news. Connect and follow us today!

Comments are closed.