Fitch Affirms Retail Automotive CP Germany 2013 UG at 'AAAsf'
OREANDA-NEWS. Fitch Ratings has affirmed Retail Automotive CP Germany 2013 UG class A notes' rating as follows:
EUR81.4m Class A notes affirmed at 'AAAsf'; Stable Outlook
The transaction is a securitisation of German fixed-rate multi-brand auto loans, originated by CreditPlus Bank AG in Germany. The bank is a subsidiary of CA Consumer Finance and part of the Credit Agricole group.
KEY RATING DRIVERS
Performance Better Than Expectations
The transaction started to amortise in August 2014 and 78% of the class A notes have been repaid. Cumulative defaults and 30 days plus delinquencies are low, at 0.63% and 0.42% respectively, of original portfolio balance (including additional asset purchases during the replenishment period). Losses reached 0.28% of original portfolio balance (including additional asset purchases during the replenishment period) and are lower than Fitch's base case. Defaults have been covered by the available excess spread via the principal deficiency ledger mechanism.
Significant Credit Enhancement (CE)
CE for the class A notes is provided through overcollateralisation and a cash reserve. Due to the sequential redemption of the notes, CE for the class A notes has increased rapidly to 27.7% from 8.4% at closing in July 2013, thus providing additional support to the senior notes against losses.
The cash reserve consistently has the required amount and is available in case of payment interruption. Remedial actions are in place to cover operational risk and, together with the available reserve, are considered sufficient to support the class A notes in a potential payment shortfall.
Stable Asset and Economic Outlook
The rating is further supported by Germany's stable economy and record-low unemployment. Additionally, the ABS Rating Outlook for the country is Stable to Positive.
Fitch has maintained its lifetime default and recovery base case assumptions unchanged at 1.25% and 56.3%, respectively. Increasing defaults and reduced recoveries by 25% each has had no impact the class A notes' rating:
DUE DILIGENCE USAGE
No third party due diligence was provided or reviewed in relation to this rating action.
Fitch has checked the consistency and plausibility of the information it has received about the performance of the asset pool and the transaction. There were no findings that were material to this analysis. Fitch has not reviewed the results of any third party assessment of the asset portfolio information or conducted a review of origination files as part of its ongoing monitoring.
Prior to the transaction closing, Fitch reviewed the results of a third party assessment conducted on the asset portfolio information, which indicated no adverse findings material to the rating analysis.
Prior to the transaction closing, Fitch conducted a review of a small targeted sample of the origination files and found the information contained in the reviewed files to be adequately consistent with the originator's policies and practices and the other information provided to the agency about the asset portfolio.
Overall Fitch's assessment of the information relied upon for the agency's rating analysis according to its applicable rating methodologies indicates that it is adequately reliable.
SOURCES OF INFORMATION
The information below was used in the analysis.
-Monthly servicer report provided by CreditPlus Bank AG as at 30 April 2016