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 4Q15 as arrears reached record lows. The Fitch 30+ Delinquency Index and the Fitch 60+ Delinquency Index fell to 0.69% and 0.34%, respectively, from 0.76% and 0.37% in 3Q15. The Fitch Annualised Loss Index remained almost unchanged at 0.17% from 0.15% over 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 4Q15. Used car prices in the EU decreased by 1% on an aggregate basis during the same quarter.
European manufacturer's sales of new vehicles continue to rise in their domestic markets in 2015 and growth is expected to continue in 2016.
Only low sales volumes in emerging markets, such as South America and Russia, coupled with the slowdown of the Chinese auto market temper an otherwise positive picture for European manufacturers from their domestic markets.
Total auto ABS issuance volumes, which include retained transactions, fell by 12% in 4Q15 relative to 4Q14. In terms of number of transactions, new issuance also decreased slightly to 19 in 4Q15 from 20 in 4Q14, including tap issuance from French and German Master Trusts.