NEW YORK--(BUSINESS WIRE)--As part of its ongoing surveillance, Fitch Ratings affirms three classes of Porsche Financial Auto Securitization Trust 2014-1 as follows:
--Class A-2 at 'AAAsf'; Outlook Stable;
--Class A-3 at 'AAAsf'; Outlook Stable;
--Class A-4 at 'AAAsf'; Outlook Stable.
KEY RATING DRIVERS
The ratings are based on available credit enhancement and loss performance. The collateral pool continues 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 Porsche Financial Services retail auto loan originations, the strength of its servicing capabilities, and the sound financial and legal structure of the transaction.
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. This increased loss coverage has further reduced the sensitivity of assigned ratings to increased loss levels.
Fitch's analysis of the Representation and Warranties (R&W) of this transaction can be found in 'Porsche Financial Auto Securitization Trust 2014-1 - 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 March 26, 2015.
Additional information is available at 'www.fitchratings.com'.
Applicable Criteria and related research:
--'U.S. Auto Loan ABS Rating Criteria' (April 10, 2015);
--'Global Structured Finance Rating Criteria' (March 31, 2015);
--'Porsche Financial Auto Securitization Trust 2014-1 - Appendix', (May 12, 2014).
Applicable Criteria and Related Research:
Rating Criteria for US Auto Loan ABS
Global Structured Finance Rating Criteria
Porsche Financial Auto Securitization Trust 2014-1 -- Appendix