Fitch Takes Rating Actions on World Omni Auto Lease Securitization Trusts 2013-A & 2014-A
July 31 2015 - 11:20AM
Business Wire
Fitch Ratings has taken various rating actions on World Omni
Automobile Lease Securitization Trusts 2013-A and 2014-A. A full
list of rating actions follows at the end of this press
release.
KEY RATING DRIVERS
The affirmation of the class A notes for both transactions and
the upgrade to the class B notes for the 2013-A transaction
reflects loss coverage levels consistent with 'AAAsf'. Hard credit
enhancement (CE) has grown for all classes since close, and
residual performance for both transactions is consistent with
Fitch's initial expectations. The Stable Outlook for all the notes
reflects Fitch's expectation for loss coverage and CE to continue
to improve as the transaction amortizes.
RATING SENSITIVITIES
Unanticipated increases in the frequency of defaults or
deterioration in vehicle values could produce loss levels higher
than the current expectations and impact available loss coverage.
Lower loss coverage could impact ratings and Rating Outlooks,
depending on the extent of the decline in coverage.
To date, the transactions have exhibited strong credit and
residual performance, inside Fitch's initial expectations with
rising loss coverage. Due to the growing CE levels and increased
loss coverage afforded to the notes, a substantial deterioration in
used vehicle values would have to occur to have a negative impact
on the updated ratings.
DUE DILIGENCE USAGE
No third-party due diligence was provided or reviewed in
relation to this rating action.
For Fitch's initial Key Rating Drivers, Rating Sensitivities and
the full detail analysis for this transaction, please see the New
Issue reports dated Sept. 5, 2013 for 2013-A and Sept. 4, 2014 for
2014-A. Fitch's analysis of the Representations and Warranties
(R&W) of these transactions can be found in 'World Omni
Automobile Lease Securitization 2013-A Appendix' and 'World Omni
Automobile Lease Securitization 2014-A - Appendix'. These 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 Global Structured Finance Transactions'
dated June 12, 2015.
Fitch has taken the following rating actions:
World Omni Automobile Lease Securitization 2013-A
-- Class A-2a affirmed at 'AAAsf'; Outlook Stable;
-- Class A-2b affirmed at 'AAAsf'; Outlook Stable;
--Class A-3 affirmed at 'AAAsf'; Outlook Stable;
--Class A-4 affirmed at 'AAAsf'; Outlook Stable;
--Class B upgraded to 'AAAsf' from 'AAsf'; Outlook Stable.
World Omni Automobile Lease Securitization 2014-A
-- Class A-2a affirmed at 'AAAsf'; Outlook Stable;
-- Class A-2b affirmed at 'AAAsf'; Outlook Stable;
--Class A-3 affirmed at 'AAAsf'; Outlook Stable;
--Class A-4 affirmed at 'AAAsf'; Outlook Stable;
--Class B affirmed at 'AAsf'; Outlook stable.
Additional information is available at www.fitchratings.com.
Applicable Criteria
Criteria for Rating U.S. Auto Lease ABS (pub. 24 Apr 2015)
https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=864500
Global Structured Finance Rating Criteria (pub. 06 Jul 2015)
https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=867952
Related Research
World Omni Automobile Lease Securitization Trust 2013-A --
Appendix
https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=717876
World Omni Automobile Lease Securitization Trust 2014-A --
Appendix
https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=770308
Additional Disclosures
Dodd-Frank Rating Information Disclosure Form
https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=988850
Solicitation Status
https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=988850
Endorsement Policy
https://www.fitchratings.com/jsp/creditdesk/PolicyRegulation.faces?context=2&detail=31
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Fitch RatingsSurveillance AnalystAndrew
TinariAnalyst+1-312-368-3127Fitch Ratings, Inc.70 W. Madison
StreetChicago, IL 60602orCommittee ChairpersonHylton HeardSenior
Director+1-212-908-0214orMedia Relations:Alyssa Castelli,
+1-212-908-0540alyssa.castelli@fitchratings.com