Fitch to Rate Hyundai Auto Receivables Trust 2015-A; Issues Presale

CHICAGO--()--Fitch Ratings expects to assign the following ratings and Rating Outlooks to the notes issued by Hyundai Auto Receivables Trust 2015-A (2015-A):

--Class A-1 asset-backed notes 'F1+sf';

--Class A-2 asset-backed notes 'AAAsf'; Outlook Stable;

--Class A-3 asset-backed notes 'AAAsf'; Outlook Stable;

--Class A-4 asset-backed notes 'AAAsf'; Outlook Stable.

--Class B asset-backed notes 'AAsf'; Outlook Stable

--Class C asset-backed notes 'Asf'; Outlook Stable

--Class D asset-backed notes 'BBBsf'; Outlook Stable

KEY RATING DRIVERS

Strong Collateral Quality: The 2015-A pool is relatively consistent with recently issued HART transactions, exhibiting a weighted average (WA) Fair Isaac Corporation (FICO) score of 743 and new vehicles comprising 94.5% of the pool. WA seasoning is slightly higher, relative to 2013?2014 HART transactions, at 8.4 months.

Sufficient CE Structure: Initial hard credit enhancement (CE) for all classes is similar to recent transactions. In addition, target levels have not changed from prior deals, and excess spread is expected to be 1.98%, down slightly from HART 2014-B's 2.27%. Initial CE is sufficient to withstand Fitch's base case cumulative net loss (CNL) proxy of 1.65% for all classes of notes at each class' respective loss coverage multiple.

Improved Loss Performance: HCA's portfolio and securitization losses declined significantly from peak 2008 levels, driven by stronger underwriting and credit quality, as well as the improving U.S. economy and stable used vehicle values.

Stable Origination, Underwriting and Servicing: HCA demonstrates adequate abilities as originator, underwriter and servicer to service 2015-A, as evidenced by the historical performance of its managed portfolio and securitizations.

Integrity of the Legal Structure: The legal structure of the transaction should provide that a bankruptcy of HCA would not impair the timeliness of the payments on the securities.

RATING SENSITIVITIES

Unanticipated increases in the frequency of defaults and loss severity on defaulted receivables could produce loss levels higher than the base case. This could result in potential rating actions on the notes. Fitch evaluated the sensitivity of the ratings assigned to all classes of 2015-A to increased losses over the life of the transaction. Fitch's analysis found that the notes display limited sensitivity to increased defaults and losses, showing no expected impact on the rating of the notes under Fitch's moderate (1.5x base case loss) scenario. The notes could experience a downgrade of one to two rating categories under Fitch's severe (2.5x base case loss) scenario.

The presale report is available at 'www.fitchratings.com' or by clicking on the above link.

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

Applicable Criteria and Related Research:

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

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

--'Counterparty Criteria for Structured Finance Transactions and Covered Bonds' (May 14, 2014);

--'Structured Finance Tranche Thickness Metrics' (July 29, 2011);

--'Criteria for Interest Rate Stresses in Structured Finance Transactions and Covered Bonds' (Dec. 19, 2014);

--'Hyundai Auto Receivables Trust 2015-A' (Jan. 8, 2015);

--'Hyundai Auto Receivables Trust 2015-A-Appendix' (Jan. 8, 2015).

Applicable Criteria and Related Research: Hyundai Auto Receivables Trust 2015-A (US ABS)

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=849348

Global Structured Finance Rating Criteria

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

Rating Criteria for U.S. Auto Loan ABS — Effective April 10, 2013 to April 7, 2014

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=704137

Structured Finance Tranche Thickness Metrics

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=646951

Criteria for Interest Rate Stresses in Structured Finance Transactions and Covered Bonds

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=838868

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=965835

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

Contacts

Fitch Ratings
Primary Analyst
Margaret Rowe, +1-312-368-3167
Director
Fitch Ratings, Inc.
70 West Madison Street
Chicago, IL 60602
or
Secondary Analyst
Khadija El Mediouri, +1-212-908-9109
Analyst
or
Committee Chairperson
Bradley Sohl, +1-212-908-1792
Senior Director
or
Media Relations, New York
Sandro Scenga, +1-212-908-0278
sandro.scenga@fitchratings.com

Contacts

Fitch Ratings
Primary Analyst
Margaret Rowe, +1-312-368-3167
Director
Fitch Ratings, Inc.
70 West Madison Street
Chicago, IL 60602
or
Secondary Analyst
Khadija El Mediouri, +1-212-908-9109
Analyst
or
Committee Chairperson
Bradley Sohl, +1-212-908-1792
Senior Director
or
Media Relations, New York
Sandro Scenga, +1-212-908-0278
sandro.scenga@fitchratings.com