NEW YORK--(BUSINESS WIRE)--As part of its ongoing surveillance, Fitch Ratings affirms two classes of outstanding notes issued from the Ally Auto Receivables Trust (AART) Series 2010-2 (2010-2) transaction as follows:
--Class B at 'AAAsf'; Outlook Stable;
--Class C at 'AAAsf'; Outlook Stable.
KEY RATING DRIVERS
The affirmations reflect loss coverage levels consistent with current ratings. The collateral pool continues to perform well within Fitch's initial expectations.
The ratings reflect the quality of Ally Financial Inc.'s (Ally) retail auto loan originations, the sound financial and legal structure of the transaction, and the strength of the servicing provided by Ally.
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 affect 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 and 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. Given the pool factor of the transaction, the probability of a material deterioration within the pool is highly unlikely.
Additional information is available at 'www.fitchratings.com'.
Applicable Criteria and related research:
--'Rating Criteria for U.S. Auto Loan ABS' (Apr. 7, 2014);
--'Global Structured Finance Rating Criteria'(May 24, 2013);
--'Ally Auto Receivables Trust 2010-2 (US ABS)'(Jun. 16, 2010).
Applicable Criteria and Related Research:
Global Structured Finance Rating Criteria
Ally Auto Receivables Trust 2010-2 (US ABS)
Rating Criteria for U.S. Auto Loan ABS