CHICAGO--(BUSINESS WIRE)--Fitch Ratings has affirmed two classes of notes issued by Ally Auto Receivables Trust 2013-SN1 as follows:
--Class A-3 notes at 'AAAsf'; Outlook Stable;
--Class A-4 notes at 'AAAsf'; Outlook Stable.
KEY RATING DRIVERS
The affirmations reflect the increase in credit enhancement since closing and strong collateral performance. Credit losses have been well within Fitch's expectations and residual performance has been producing cumulative gains.
Fitch will continue to monitor economic conditions and their impact and the trust level performance variables and update the ratings accordingly.
RATING SENSITIVITIES
Unanticipated increases in the frequency of defaults or deterioration in vehicle values could produce loss levels higher than the current expectations and impact available loss coverage. Lower loss coverage could impact ratings and Rating Outlooks, depending on the extent of the decline in coverage.
To date, the transaction has exhibited strong credit and residual performance, well within Fitch's initial expectations with rising loss coverage. Due to the growing credit enhancement levels and increased loss coverage afforded to the notes, a substantial deterioration in used vehicle values would have to occur to have a negative impact on the updated ratings.
Fitch's analysis of the Representations and Warranties (R&W) for the 2013-SN1 transaction can be found in 'Ally Auto Receivables Trust 2013-SN1- 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 Global Structured Finance Transactions' dated March 26, 2015.
Additional information is available at 'www.fitchratings.com'.
The information used to assess these ratings was sourced from the issuer, periodic trustee reports, note valuation reports, and the public domain.
Applicable Criteria and Related Research:
--'Criteria for Rating U.S. Auto Lease ABS' dated April 24, 2015;
--'Global Structured Finance Rating Criteria' dated March 31, 2015;
--'Ally Auto Receivables Trust 2013-SN1 (US ABS)' dated May 28, 2013;
--'Ally Auto Receivables Trust 2013-SN1 Appendix' dated May 28, 2013.
Applicable Criteria and Related Research:
Criteria for Rating U.S. Auto Lease ABS
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=864500
Global Structured Finance Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=864268
Ally Auto Receivables Trust 2013-SN1 (US ABS)
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=708624
Ally Auto Receivables Trust 2013-SN1 -- Appendix
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=708678
Additional Disclosure
Solicitation Status
http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=984201
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