NEW YORK--(BUSINESS WIRE)--As part of its ongoing surveillance, Fitch Ratings has taken various rating actions on two AmeriCredit Automobile Receivables Trusts as follows:
--Class A-3 Affirmed at 'AAAsf'; Outlook Stable;
--Class B Affirmed at 'AAAsf'; Outlook Stable;
--Class C Upgraded to 'AAAsf' from 'AAsf'; Outlook Revised to Stable from Positive;
--Class D Upgraded to 'Asf' from 'BBBsf'; Outlook Positive;
--Class E Upgraded to 'BBBsf' from 'BBsf'; Outlook Positive.
--Class A-2-A Affirmed at 'AAAsf'; Outlook Stable;
--Class A-2-B 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 Stable.
The class E notes in 2015-4 are not rated.
KEY RATING DRIVERS
The rating actions are based on available credit enhancement and loss performance. The collateral pools continue to perform within Fitch's expectations. Under the credit enhancement structure, the securities are able to withstand stress scenarios consistent with the current ratings and make full payments to investors in accordance with the terms of the documents.
The ratings reflect the quality of AmeriCredit Financial Services, Inc.'s (dba GM Financial) retail auto loan originations, the strength of its servicing capabilities, and the sound financial and legal structure of the transactions.
Unanticipated increases in the frequency of defaults and loss severity could produce loss levels higher than the current projected base case loss proxies and impact available loss coverage and multiples levels for the transactions. 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 sensitivity to a 1.5x and 2.5x increase of Fitch's base case loss expectation. However, the transactions have exhibited strong performance to date with losses within Fitch's initial expectations with rising loss coverage and multiple levels consistent with the current ratings. A material deterioration in performance would have to occur within the asset pools to have potential negative impact on the outstanding ratings.
USE OF THIRD-PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G-10
Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action.
Additional information is available at www.fitchratings.com.
Counterparty Criteria for Structured Finance and Covered Bonds (pub. 01 Sep 2016)
Criteria for Interest Rate Stresses in Structured Finance Transactions and Covered Bonds (pub. 17 May 2016)
Global Structured Finance Rating Criteria (pub. 27 Jun 2016)
Rating Criteria for U.S. Auto Loan ABS (pub. 21 Mar 2016)
Dodd-Frank Rating Information Disclosure Form
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