MRO Magazine

Fitch Affirms 2 Classes of Honda Auto Receivables 2012-3 Owner Trust; Outlook Stable


May 28, 2015
By Business Wire News

NEW YORK

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

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. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

Fitch Ratings
Primary Analyst:
Puloma Mukherjee, +1-212-908-9131
Associate Director
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Committee Chairperson:
Steven Stubbs, +1-212-908-0676
Senior Director
or
Sandro Scenga, +1-212-908-0278
Media Relations, New York
sandro.scenga@fitchratings.com