Fitch Affirms Two and Upgrades One Class of World Omni Auto Receivables Trust 2013-A

NEW YORK--()--As part of its ongoing surveillance, Fitch Ratings has affirmed two and upgraded one outstanding class of the World Omni Auto Receivables Trust 2013-A. A full list of rating action follows at the end of this release.

KEY RATING DRIVERS

The rating 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 original ratings and make full payments to investors in accordance with the terms of the documents.

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 stable performance with losses 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.

DUE DILIGENCE USAGE

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

Fitch has taken the following rating actions:

World Omni Auto Receivables Trust 2013-A:

-- 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

Counterparty Criteria for Structured Finance and Covered Bonds (pub. 14 May 2014)
https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=744158

Criteria for Servicing Continuity Risk in Structured Finance (pub. 17 Dec 2015)
https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=875586

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. 21 Mar 2016)
https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=878723

Related Research

World Omni Auto Receivables Trust 2013-A -- Appendix
https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=708999

Additional Disclosures

Dodd-Frank Rating Information Disclosure Form
https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=1001985

Solicitation Status
https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=1001985

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

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Contacts

Fitch Ratings, Inc.
Primary Analyst
Yun Tian, +1 212-908-0307
Associate Director
33 Whitehall Street,
New York, NY, 10004
or
Committee Chairperson
Hylton Heard, +1 212-908-0214
Senior Director
or
Media Relations, New York
Sandro Scenga, +1 212-908-0278
sandro.scenga@fitchratings.com

Contacts

Fitch Ratings, Inc.
Primary Analyst
Yun Tian, +1 212-908-0307
Associate Director
33 Whitehall Street,
New York, NY, 10004
or
Committee Chairperson
Hylton Heard, +1 212-908-0214
Senior Director
or
Media Relations, New York
Sandro Scenga, +1 212-908-0278
sandro.scenga@fitchratings.com