OREANDA-NEWS. Fitch Ratings says in a new report that Chinese auto ABS transactions continue to perform above Fitch Ratings' expectations despite a slowdown in economic growth and the falling sales growth for passenger vehicles in China. Cumulative default rates for all publicly issued auto ABS transactions remain at or below 1% of the original balance, and Fitch expects that cumulative defaults of these transactions will not even reach 1.5% before they mature.

Fitch expects existing transactions to continue to perform well, and we do not expect the projected slowdown in growth for China to have a significant impact on ratings. Any impact is more likely to be felt in the performance of future issuance as the market becomes increasingly competitive.

The report is part of the Fitch "Chart of the Month" series, which highlights topical issues in various sectors in Asia. The report can be found at www.fitchratings.com.