Fitch Upgrades One and Affirms Two Classes of World Omni Auto Receivables Trust 2012-B

NEW YORK--()--As part of its ongoing surveillance, Fitch Ratings upgrades one and affirms two outstanding classes of the World Omni Auto Receivables Trust 2012-B. A full list of rating actions follows at the end of this press release.

KEY RATING DRIVERS

The rating upgrades and affirmations are based on available credit enhancement (CE) and loss performance. The collateral pool continues to perform within Fitch's expectations. Based on the current structure and CE, the securities are able to withstand stress scenarios consistent with the assigned ratings and make full payments to investors in accordance with the terms of the documents.

The ratings reflect the quality of World Omni Financial Corp.'s retail auto loan originations, the strength 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 well within Fitch's initial expectations with rising loss coverage and multiple levels. Therefore, a material deterioration in performance would have to occur within the asset pool to have potential negative impact on the outstanding ratings.

DUE DILIGENCE USAGE

No third-party due diligence was provided or reviewed in relation to this rating action

Fitch's analysis of the Representation and Warranties (R&W) of the transactions in this review can be found in 'World Omni Auto Receivables Trust 2012-B -- 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 June 12, 2015.

Fitch has taken the following rating actions:

World Omni Auto Receivables Trust 2012-B

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

--Class A-4: affirmed at 'AAAsf'; Outlook Stable;

--Class B: upgraded to 'AAAsf' from 'AAsf'; Outlook revised to Stable from Positive.

Additional information is available at www.fitchratings.com

Applicable Criteria

Global Structured Finance Rating Criteria (pub. 06 Jul 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=867952

Rating Criteria for U.S. Auto Loan ABS (pub. 10 Apr 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=863979

Related Research

World Omni Auto Receivables Trust 2012-B -- Appendix

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=729737

Additional Disclosures

Dodd-Frank Rating Information Disclosure Form

https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=989742

Solicitation Status

https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=989742

Endorsement Policy

https://www.fitchratings.com/jsp/creditdesk/PolicyRegulation.faces?context=2&detail=31

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Contacts

Fitch Ratings
Primary Analyst
Yun Tian
Associate Director
+1-212-908-0307
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY, 10004
or
Committee Chairperson
Du Trieu
Senior Director
+1-312-368-2091
or
Media Relations:
Sandro Scenga, +1-212-908-0278
sandro.scenga@fitchratings.com

Contacts

Fitch Ratings
Primary Analyst
Yun Tian
Associate Director
+1-212-908-0307
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY, 10004
or
Committee Chairperson
Du Trieu
Senior Director
+1-312-368-2091
or
Media Relations:
Sandro Scenga, +1-212-908-0278
sandro.scenga@fitchratings.com