Fitch Affirms Santander Drive Auto Receivables Trust 2015-3

NEW YORK--()--As part of its ongoing surveillance, Fitch Ratings has taken the following rating actions on Santander Drive Auto Receivables Trust (SDART) 2015-3:

--Class A-2a affirmed at 'AAAsf'; Outlook Stable;

--Class A-2b affirmed at 'AAAsf'; Outlook Stable;

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

--Class B affirmed at 'AAsf'; Outlook revised to Positive from Stable;

--Class C affirmed at 'Asf'; Outlook revised to Positive from Stable;

--Class D affirmed at 'BBBsf'; Outlook revised to Positive from Stable;

--Class E affirmed at 'BBsf'; Outlook revised to Positive from Stable.

KEY RATING DRIVERS

The rating actions are based on available credit enhancement and loss performance. The collateral pool has performed within Fitch's expectations thus far. Under the current structure, the securities are able to withstand stress scenarios consistent with the recommended ratings and make full payments to investors in accordance with the terms of the documents.

To date, the transaction has exhibited strong performance with losses within Fitch's initial expectations, with rising loss coverage and multiple levels consistent with the recommended ratings for each class. A material deterioration in performance would have to occur within the asset pool for any potential negative impact on the outstanding ratings to the notes.

Fitch revised its loss proxy, based on performance to date below Fitch's initial expectations. Based on current loss trends, Fitch expects final CNL for 2015-3 to be in the 14%-16% range.

Fitch will continue to monitor the transaction and may take additional rating actions in the future. The ratings reflect the quality of Santander Consumer USA Inc.'s retail auto loan originations, the adequacy 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.

The class E notes show limited sensitivity to the back-ended loss timing scenario. Despite the slight decline observed, the net loss coverage multiple under the back ended scenario for the class E notes is still well in excess of the recommended multiple for 'BBsf'.

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 Interest Rate Stresses in Structured Finance Transactions and Covered Bonds (pub. 17 May 2016)
https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=879815

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

Additional Disclosures

Dodd-Frank Rating Information Disclosure Form
https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=1005594

Solicitation Status
https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=1005594

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

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Contacts

Fitch Ratings
Primary Analyst
Timothy McNally, +1-212-908-0870
Associate Director
Fitch Ratings, Inc.
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
Primary Analyst
Timothy McNally, +1-212-908-0870
Associate Director
Fitch Ratings, Inc.
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