Fitch Upgrades 6 & Affirms 9 Classes of 3 Ally Auto Receivables Trusts

NEW YORK--()--Fitch Ratings affirms nine and upgrades six classes from Ally Auto Receivables Trust (AART) 2011-2, 2011-3, and 2012-2 transactions, as part of its ongoing surveillance process. The collateral pools continue to perform within Fitch's expectations, with 2011-2, 2011-3, and 2012-2 experiencing 0.20%, 0.19%, and 0.18% in losses, respectively.

KEY RATING DRIVERS

The rating upgrades of the class B, C and D notes in the 2011-2 and 2011-3 series are a result of strong loss coverage due to increasing credit enhancement available to the notes. The transactions have continued to perform within Fitch's expectations with 0.20% and 0.19% in cumulative net losses to date, respectively. The affirmations on the remaining notes reflect loss coverage levels consistent with current ratings.

The rating affirmations in the 2012-2 series reflect strong collateral performance and increasing credit enhancement levels for the outstanding notes. The transaction continues to perform with expectation with 0.18% of cumulative net losses, to date.

The Positive Outlook designation on the certain classes of notes reflects Fitch's view that the notes will continue to perform well and may warrant a review for potential positive rating action in the next 12 months.

RATING SENSITIVITY

Unanticipated increases in the frequency of defaults and loss severity could produce loss levels higher than the current projected base case loss proxy and impact available loss coverage and multiples levels for the transactions. Lower loss coverage could impact ratings and rating outlooks, depending on the extent of the decline in coverage.

In Fitch's initial review of the transactions, the notes were found to have limited sensitivity to a 1.5x and 2.5x increase of Fitch's base case loss expectation. To date, the transactions have exhibited strong performance with losses well within Fitch's initial expectations with rising loss coverage and multiple levels. As such, continued performance consistent with recent performance for the transactions would most likely result in positive rating actions. Conversely, a material deterioration in performance would have to occur within the asset pools to have potential negative impact on the outstanding ratings.

Fitch has taken the following rating actions:

2011-2

--Class A-3 notes affirmed at 'AAAsf', Outlook Stable;

--Class A-4 notes affirmed at 'AAAsf', Outlook Stable;

--Class B notes upgraded to 'AAAsf' from 'AAsf', Outlook revised to Stable from Positive;

--Class C notes upgraded to 'AAsf' from 'Asf', Outlook Positive;

--Class D notes upgraded to 'Asf' from 'BBBsf', Outlook Positive.

2011-3

--Class A-3 notes affirmed at 'AAAsf', Outlook Stable;

--Class A-4 notes affirmed at 'AAAsf', Outlook Stable;

--Class B notes upgraded to 'AAAsf' from 'AAsf', Outlook revised to Stable from Positive;

--Class C notes upgraded to 'AAsf' from 'Asf', Outlook Positive;

--Class D notes upgraded to 'Asf' from 'BBBsf', Outlook Positive.

2012-2

--Class A-2 notes affirmed at 'AAAsf', Outlook Stable;

--Class A-3 notes affirmed at 'AAAsf', Outlook Stable;

--Class A-4 notes affirmed at 'AAAsf', Outlook Stable;

--Class B notes affirmed at 'AAsf', Outlook revised to Positive from Stable;

--Class C notes affirmed at 'Asf', Outlook revised to Positive from Stable.

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:

--'U.S. Auto Loan ABS Rating Criteria' (April 16, 2012);

--'"Global Structured Finance Rating Criteria' (June 6, 2012).

Applicable Criteria and Related Research

Criteria for Rating U.S. Auto Lease ABS

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=678137

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=679923

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Contacts

Fitch Ratings
Primary Analyst
Timothy McNally, +1-212-908-0870
Analyst
Fitch Ratings, Inc.
One State Street Plaza
New York, NY 10004
or
Chairperson
Hylton Heard, +1-212-908-0214
Senior Director
or
Media Relations:
Sandro Scenga, New York, +1 212-908-0278
Email: sandro.scenga@fitchratings.com

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Contacts

Fitch Ratings
Primary Analyst
Timothy McNally, +1-212-908-0870
Analyst
Fitch Ratings, Inc.
One State Street Plaza
New York, NY 10004
or
Chairperson
Hylton Heard, +1-212-908-0214
Senior Director
or
Media Relations:
Sandro Scenga, New York, +1 212-908-0278
Email: sandro.scenga@fitchratings.com