Fitch Upgrades One Class of Santander Drive Auto Receivables Trust 2013-1

NEW YORK--()--As part of its ongoing surveillance, Fitch Ratings has upgraded one and affirmed four classes of the Santander Drive Auto Receivables Trust 2013-1 transaction as follows:

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

--Class B upgraded to 'AAAsf' from 'AAsf'; Outlook Stable;

--Class C affirmed at 'Asf'; Outlook to Positive from Stable;

--Class D affirmed at 'BBBsf'; Outlook to Positive from Stable;

--Class E affirmed at 'BBsf'; Outlook to Positive from Stable.

KEY RATING DRIVERS

The rating actions are based on available credit enhancement and loss performance. The collateral pool continues to perform within Fitch's expectations. Under the credit enhancement structure, 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.

Fitch's review is based on the initial base case cumulative net loss (CNL) estimate of 16.25%. However, based on current loss trends, Fitch projects CNL for this pool to be in the 14%-15% range.

The ratings reflect the quality of Santander Consumer USA, Inc.'s retail auto loan originations, the adequacy of its servicing capabilities, and the sound financial and legal structure of the transaction.

RATING SENSITIVITIES

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 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.

Fitch's analysis of the Representation and Warranties (R&W) of this transaction can be found in Santander Drive Auto Receivables Trust 2013-1 -- Appendix. These R&W are compared to those of typical R&W for the asset class as detailed in the special report 'Representations, Warranties, and Enforcement Mechanisms in the Global Structured Finance Transactions' dated April 17, 2012.

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research:

--'Rating Criteria for U.S. Auto Loan ABS' (April 7, 2014);

--'Global Structured Finance Rating Criteria' (Aug 4, 2014);

--'Santander Drive Auto Receivables Trust 2013-1 - Appendix' (Jan. 7, 2013).

Applicable Criteria and Related Research:

Rating Criteria for U.S. Auto Loan ABS

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=738718

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=754389

Santander Drive Auto Receivables Trust 2013-1 -- Appendix

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=731975

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=925955

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Contacts

Fitch Ratings
Primary Analyst:
Khadija El Mediouri, +1-212-908-9109
Analyst
Fitch Ratings, Inc.
33 White Hall Street
New York, NY 10004
or
Secondary Analyst:
Hylton Heard, +1-212-908-0214
Senior Director
or
Committee Chairperson:
Bradley Sohl, +1-212-908-0792
Senior Director
or
Sandro Scenga, +1-212-908-0278
Media Relations, New York
sandro.scenga@fitchratings.com

Contacts

Fitch Ratings
Primary Analyst:
Khadija El Mediouri, +1-212-908-9109
Analyst
Fitch Ratings, Inc.
33 White Hall Street
New York, NY 10004
or
Secondary Analyst:
Hylton Heard, +1-212-908-0214
Senior Director
or
Committee Chairperson:
Bradley Sohl, +1-212-908-0792
Senior Director
or
Sandro Scenga, +1-212-908-0278
Media Relations, New York
sandro.scenga@fitchratings.com