Fitch Affirms All Outstanding Classes of Honda Auto Receivables Owner Trust 2015-2
OREANDA-NEWS. As part of its ongoing surveillance, Fitch Ratings has affirmed Honda Auto Receivables Owner Trust 2015-2 as follows:
--Class A-2 at 'AAAsf'; Outlook Stable;
--Class A-3 at 'AAAsf'; Outlook Stable;
--Class A-4 at 'AAAsf'; Outlook Stable.
Class A-1 and the certificates are not rated.
KEY RATING DRIVERS
The rating affirmations are based on available credit enhancement (CE) and current loss performance, which continues to perform within Fitch's initial expectations. Based on the current structure and CE, the securities are able to withstand stress scenarios consistent with the assigned ratings and make full payments to investors in accordance with the terms of the documents.
The ratings reflect the quality of American Honda Finance Corp.'s retail auto loan originations, the strength of its servicing capabilities, and the sound financial and legal structure of the transactions.
Unanticipated increases in the frequency of defaults and loss severity could produce loss levels higher than the current projected base case loss proxy, and impact available loss coverage and multiples levels for the transaction. Lower loss coverage could impact ratings and Rating Outlooks, depending on the extent of the decline in coverage.
In Fitch's initial review of the transaction, the notes were found to have limited sensitivity to a 1.5x and 2.5x increase of Fitch's base case loss expectation. To date, the transaction has exhibited strong performance with losses well within Fitch's initial expectations with rising loss coverage and multiple levels. Therefore, a material deterioration in performance would have to occur within the asset pool to have potential negative impact on the outstanding ratings.