OREANDA-NEWS. Fitch Ratings has upgraded E-Carat S. A., Compartment 8's (E-Carat 8) class B notes and affirmed the class A notes, as follows:

EUR311.7m class A notes: affirmed at 'AAAsf'; Stable Outlook

EUR15.7m class B notes: upgraded to 'AA+sf' from 'AAsf'; Positive Outlook

This transaction is the eighth public securitisation of auto loan receivables originated by Opel Bank GmbH in Germany, previously known as GMAC Bank GmbH (GMACB). The transaction is static and the rated notes amortise sequentially.

KEY RATING DRIVERS

Robust Asset Performance

The rating actions reflect the portfolio's solid performance since issue in August 2015 and increases in credit enhancement. The class A notes have amortised to EUR311.7m at end-June 2016 from the original amount of EUR435m. The portfolio's composition has remained largely unchanged.

Performance of the asset pool, in terms of defaults and recoveries, has been better than Fitch's expectations determined in the initial rating analysis at closing. Fitch has revised its lifetime default base case for the transaction to 1.3% from 1.7%.

Stable Economic Outlook

The economic outlook in Germany supports our expectation of a limited increase in defaults. Fitch forecasts GDP growth of 1.8% in 2016, 1.5% in 2017 and 1.4% in 2018. Household consumption growth is underpinned by a strong labour market. Unemployment declined to a historical low of 4.2% in May, while real disposable income should remain positive in the coming months.

Operational Risk Adequately Mitigated

The transaction benefits from a specific liquidity reserve, which amortises to equal 1.2% of the total outstanding class A and class B notes, with a floor of EUR200,000. At the end of the reporting period in June 2016 the reserve stood at EUR4.1m. The potential commingling exposure is covered by a non-amortising commingling reserve of 2.2% of the transaction closing balance.

RATING SENSITIVITIES

Expected impact upon the note rating of increased defaults and reduced recoveries (class A/B):

Current Ratings: 'AAAsf'/'AA+sf'

Increase base case defaults and reduce base case recoveries by 10%: 'AAAsf'/'AAsf'

Increase base case defaults and reduce base case recoveries by 25%: 'AA+sf'/'A+sf'

DUE DILIGENCE USAGE

No third party due diligence was provided or reviewed in relation to this rating action.

DATA ADEQUACY

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 investor report provided by GMAC UK plc as at end-June 2016

-Loan level data from the European Data Warehouse (Edwin) as at end-May 2016