S&P: TCF Auto Receivables Owner Trust 2016-1 $501.62 Million Notes Assigned Ratings
The note issuance is an asset-backed securities transaction backed by prime auto loan receivables.
The ratings reflect:The availability of approximately 16.1%, 13.2%, 10.3%, and 6.9% credit support (including excess spread) for the class A, B, C, and D notes, respectively, based on our various stressed cash flow scenarios. These credit support levels provide coverage of approximately 5.0x, 4.0x, 3.3x, and 2.0x our 2.70%-3.00% expected cumulative net loss range for the class A, B, C, and D notes, respectively. The timely interest and principal payments made under stress cash flow modeling scenarios that are appropriate to the assigned ratings. The expectation that under a moderate ('BBB') stress scenario, all else being equal, the ratings on the class A and B notes will remain within one rating category of the assigned ratings during the first year, and the ratings on the class C and D notes will remain within two rating categories of the assigned ratings during the first year. This is within the rating tolerance for 'AAA', 'AA', 'A+', and 'BBB' rated securities, as outlined in our credit stability criteria (see "Methodology: Credit Stability Criteria," published May 3, 2010). The credit enhancement in the form of subordination, overcollateralization, a reserve account, and excess spread. The characteristics of the collateral pool being securitized. The transaction's payment and legal structures.