Fitch: European Auto ABS Performance Remains Strong
OREANDA-NEWS. Fitch Ratings says in a new report that European auto ABS performance continued to improve in 3Q15 as arrears reached record lows. The Fitch 30+ Delinquency Index and the Fitch 60+ Delinquency Index fell to 0.76% and 0.37%, respectively, from 0.83% and 0.40% in 2Q15. The Fitch Annualised Loss Index decreased slightly to 0.15% from 0.20% in the same period.
Macro-economic factors showed positive trends across the EU, with new car registrations increasing across all the five major EU economies in 3Q15. Used car prices in the EU also increased on an aggregate basis during the quarter.
However, the manipulation by VW of diesel emissions in the US introduced uncertainty over the treatment of diesel emissions by regulators in Europe in general. Additionally, concerns about manufacturers' profitability over slowing growth in new vehicle sales in China means that sector sentiment remained subdued in 3Q15.
Total auto ABS issuance volumes, which include retained transactions, were up 13% in 3Q15 relative to 3Q14. In terms of number of transactions, new issuance increased to 20 in 3Q15 from 14 in 3Q14, including tap issuance from French and German Master Trusts.