NEW YORK--(BUSINESS WIRE)--As part of its ongoing surveillance, Fitch Ratings affirms three classes of notes from the Ally Auto Receivables Trust (AART) series 2010-5 transaction as follows:
--Class A-4 at 'AAAsf'; Outlook Stable;
--Class B at 'AAAsf'; Outlook Stable;
--Class C at 'AAAsf'; Outlook Stable.
KEY RATING DRIVERS
The rating affirmations to the notes reflect the ongoing strong deal performance, and increasing credit enhancement available to the notes. The transaction continues to perform well within Fitch's cumulative net loss expectations to date.
The Stable Outlooks on the notes reflect Fitch's view that the notes will continue to perform well.
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 transaction. 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 well within Fitch's initial expectations with rising loss coverage and multiple levels. As such, a material deterioration in performance would have to occur within the asset pool to have potential negative impact on the outstanding ratings. It should be noted that the occurrence of an increase in defaults is highly unlikely with this particular transaction given the remaining life and very strong performance to date.
Additional information is available at 'www.fitchratings.com'.
Applicable Criteria and related research:
--'Rating Criteria for U.S. Auto Loan ABS', dated April 10, 2013;
--'Global Structured Finance Rating Criteria', dated May 24, 2013.
Applicable Criteria and Related Research:
Rating Criteria for U.S. Auto Loan ABS
Global Structured Finance Rating Criteria