NEW YORK--(BUSINESS WIRE)--As part of its ongoing surveillance, Fitch affirms three and upgrades two classes of CarMax Auto Owner Trust 2011-2 transaction as follows:
--Class A-3 affirmed at 'AAAsf'; Outlook Stable;
--Class A-4 affirmed at 'AAAsf'; Outlook Stable;
--Class B upgraded to 'AAAsf' from 'AAsf'; Outlook to Stable from Positive
--Class C upgraded to 'AAsf' from 'Asf'; Outlook to Stable from Positive
--Class D affirmed at 'BBBsf'; Outlook Positive.
KEY RATING DRIVERS
The upgrades and rating affirmations are based on available credit enhancement and loss performance. The collateral pool continues to perform within Fitch's expectations. Under the current structure and credit enhancement, the securities are able to withstand stress scenarios consistent with the current rating and make full payments to investors in accordance with the terms of the documents.
The ratings reflect the quality of CarMax Business Services, LLC's retail auto loan originations, the strength of its servicing capabilities, and the sound financial and legal structure of the transaction.
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 transaction, 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 transaction has exhibited strong performance with losses within Fitch's initial expectations with rising loss coverage and multiple levels consistent with the current ratings. A material deterioration in performance would have to occur within the asset pool to have potential negative impact on the outstanding ratings.
Additional information is available at 'www.fitchratings.com'.
Applicable Criteria and related research:
--'Rating Criteria for U.S. Auto Loan ABS' (April 10, 2013);
--'Global Structured Finance Rating Criteria'(May 24, 2013).
Applicable Criteria and Related Research:
Rating Criteria for U.S. Auto Loan ABS
Global Structured Finance Rating Criteria