Fitch: U.S. Auto ABS Finishes 2011 Positively

NEW YORK--(BUSINESS WIRE)-- Losses fell for both prime and subprime U.S. auto loan ABS last month, and the first half of 2012 augurs for more of the same, according to the latest index results from Fitch Ratings

Performance has been supported by two consecutive months of stronger used vehicle values and some positive economic data in the U.S. With these factors supporting asset performance, Fitch expects auto loan ABS to produce low loss rates in the first half of 2012 consistent with 2009-2011, and the rating outlook is positive.

Fitch expects used vehicle values will continue to benefit from low supply and healthy demand in 2012, supporting elevated recovery rates in defaulted and repossessed auto loans securitized in auto ABS transactions, containing loss levels.

Annualized net losses (ANL) on prime auto loan ABS improved by 7.6% in December month-over-month (MOM) to 0.49%. ANL closed out 2011 41% below December 2010. The low for the year was 0.41% in June, a new record low, while the high was 0.93% back in January.

The average monthly prime ANL was 0.58% in 2011, the lowest on record to date, easily beating out the previous low of 0.77% recorded in 2006. 60+ Days delinquencies were 0.50% in December, up over November by 8.7% but 12.3% below December 2010. Consistent with 2011, loss frequency is still the focus for performance in the first half of the year, given the ongoing European debt crisis and its potential impact on the U.S. economy.

In the subprime sector, 60+ days delinquencies moved 6.3% higher in December over the prior month to 3.19%, but were still 4.0% below 2010 levels. ANL crept lower to 6.36% in December over November, down 4.9% MOM and were 4.1% lower than in the same period in 2010.

Fitch auto loan ABS indices track the performance of $50.32 billion worth of outstanding notes issued from just over 100 transactions. 82% are backed by prime auto loan ABS or $41.28 billion, while the remaining 18% issued are non-prime auto loan ABS.

Additional information is available at www.fitchratings.com=

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE.