Fitch Affirms 2 Classes of Honda Auto Receivables 2012-3 Owner Trust; Outlook Stable
May 28 2015 - 2:04PM
Business Wire
Fitch Ratings affirms two classes of Honda Auto Receivables
2012-3 Owner Trust as follows:
--Class A-3 asset-backed notes 'AAAsf'; Outlook Stable;
--Class A-4 asset-backed notes 'AAAsf'; Outlook Stable.
KEY RATING DRIVERS
The transaction has exceeded performance to date relative to
Fitch's initial cumulative net loss expectation of 0.90% with a
current CNL of 31 bps. The affirmations of the A-3 and A-4 notes
reflect loss coverage levels consistent with current ratings. The
stable outlooks on the notes reflect Fitch's view that the
transaction will continue to perform well.
RATING SENSITIVITIES
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 multiple levels. Lower loss coverage could impact ratings and
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 expectation with rising loss coverage and multiple levels.
As such, a material deterioration in performance would have to
occur within the asset pool to have potential negative impact on
the outstanding ratings.
Fitch's analysis of the Representation and Warranties (R&W)
of 2012-3 can be found in Honda Auto Receivables 2012-3 Owner Trust
Appendix'. The R&W are compared to those of typical R&W for
the asset class as detailed in the special report 'Representations,
Warranties, and Enforcement Mechanisms in the Global Structured
Finance Transactions' dated March 26, 2015.
Additional information is available at www.fitchratings.com.
Applicable Criteria
Global Structured Finance Rating Criteria (pub. 31 Mar 2015)
https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=864268
Rating Criteria for US Auto Loan ABS (pub. 10 Apr 2015)
https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=863979
Additional Disclosures
Solicitation Status
https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=985477
Endorsement Policy
https://www.fitchratings.com/jsp/creditdesk/PolicyRegulation.faces?context=2&detail=31
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ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.
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Fitch RatingsPrimary Analyst:Puloma Mukherjee,
+1-212-908-9131Associate DirectorFitch Ratings, Inc.33 Whitehall
StreetNew York, NY 10004orCommittee Chairperson:Steven Stubbs,
+1-212-908-0676Senior DirectororSandro Scenga, +1-212-908-0278Media
Relations, New Yorksandro.scenga@fitchratings.com