NEW YORK--(BUSINESS WIRE)--As part of its ongoing surveillance, Fitch Ratings has affirmed eight classes from the Ally Auto Receivables Trust 2012-5 and 2013-1 as follows:
2012-5:
--Class A-4 at 'AAAsf'; Outlook Stable;
--Class B at 'AAAsf'; Outlook Stable;
--Class C at 'AAAsf'; Outlook Stable;
--Class D at 'AAAsf'; Outlook Stable.
2013-1:
--Class A-4 at 'AAAsf'; Outlook Stable;
--Class B at 'AAAsf'; Outlook Stable;
--Class C at 'AAAsf'; Outlook Stable;
--Class D at 'AAAsf'; Outlook Stable.
KEY RATING DRIVERS
The affirmations on the remaining notes in the two transactions reflect loss coverage levels consistent with current ratings. The transactions have continued to perform within Fitch's cumulative net loss expectations to date.
The ratings reflect the quality of Ally Financial Inc.'s (Ally) retail auto loan originations, the sound financial and legal structure of the transaction, and the strength of the servicing provided by Ally.
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 transactions, the notes were found to have limited sensitivity to a 1.5x and 2.5x increase of Fitch's base case loss expectations. To date, the transactions have exhibited strong performance with losses well 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 pools to have potential negative impact on the outstanding ratings.
Fitch's analysis of the Representation and Warranties (R&W) of the transactions in this review initially rated on or after Sept. 26, 2011 can be found in the respective appendices listed below. 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 March 2nd, 2016.
DUE DILIGENCE USAGE
No third-party due diligence was provided or reviewed in relation to this rating action.
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
Ally Auto Receivables Trust 2012-5 - Appendix
https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=720277
Ally Auto Receivables Trust 2013-1 -- Appendix
https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=702592
Additional Disclosures
Dodd-Frank Rating Information Disclosure Form
https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=1002435
Solicitation Status
https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=1002435
Endorsement Policy
https://www.fitchratings.com/jsp/creditdesk/PolicyRegulation.faces?context=2&detail=31
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