OREANDA-NEWS. S&P Global Ratings today raised its ratings on five classes of subordinated notes from United Auto Credit Securitization Trust (UACST) 2014-1 and 2015-1 and affirmed its ratings on five classes from UACST 2016-1 (see list). The transactions are backed by subprime retail auto loans originated and serviced by United Auto Credit Corp. (UACC).

The rating actions reflect collateral performance to date and our expectations regarding future collateral performance, as well as each transaction's structure and credit enhancement. Additionally, we incorporated secondary credit factors, including credit stability, payment priorities under various scenarios, and sector - and issuer-specific analysis. Considering these factors, we believe the notes' creditworthiness is consistent with the raised and affirmed ratings.

For UACST 2014-1, we raised our loss expectation to 20.50%-21.50% from our January 2016 revised loss expectation of 20.00%-21.00%. Our initial loss expectation for this transaction was 16.75%-17.25%.

For UACST 2015-1, we also raised our loss expectation to 21.50%-22.50% from our initial expectation of 18.50%-19.00% (see "Presale: United Auto Credit Securitization Trust 2016-2," published Sept. 8, 2016). Although losses are trending higher for this transaction, each class' credit support has increased as a percentage of the amortizing pool balance since the transaction closed (see table 3). In our opinion, the total credit support, as a percentage of the amortizing pool balance, compared with our revised loss expectation, is adequate for the raised ratings.

For UACST 2016-1, we maintained our initial loss expectation pending further collateral performance, given this transaction's short performance history. However, since UACST 2016-1 closed, the credit support for each class has increased as a percentage of the amortizing pool balance (see table 3) and in our view, is adequate to support the affirmed ratings.