Fitch Rates Hyundai Auto Lease Securitization Trust 2013-A

  Fitch Rates Hyundai Auto Lease Securitization Trust 2013-A

Business Wire

NEW YORK -- March 6, 2013

Fitch Ratings assigns the following ratings and Rating Outlooks to the notes
issued by Hyundai Auto Lease Securitization Trust 2013-A:

--Class A-1 asset-backed notes 'F1+sf';

--Class A-2 asset-backed notes 'AAAsf'; Outlook Stable;

--Class A-3 asset-backed notes 'AAAsf'; Outlook Stable;

--Class A-4 asset-backed notes 'AAAsf'; Outlook Stable;

--Class B asset-backed notes 'AAsf'; Outlook Stable.

Key Rating Drivers

Stable Collateral Quality: The pool is consistent with that of 2012-A, with a
strong WA FICO score of 743, seasoning of 11 months and similar residual value
(RV) maturity concentrations.

Aggressive Sales and Lease Portfolio Growth: Due to notable sales and lease
origination growth in recent years, there could be substantially more supply
of used Hyundai and Kia vehicles available for sale at auction in coming
years. As this could present a risk to residual values, Fitch has accounted
for this in the residual loss analysis.

Adequate CE Structure: Initial hard credit enhancement (CE) is 16.95% and
13.50%, respectively, for the class A and B notes, growing to 18.95% and
15.50% of the initial securitization value. Initial excess spread is expected
to be 4.37%. Loss coverage is adequate to support Fitch's stressed
assumptions.

Stable Loss Performance: Credit and residual losses on HCA's portfolio
continue to decline significantly from the elevated levels seen in 2008 and
2009. This is a result of strong obligor credit quality and a solid used
vehicle market, leading to higher recovery rates and residual realizations.

Used Vehicle Market Uncertainty: While the wholesale used vehicle market in
the U.S. is currently strong, factors such as increased new vehicle sales and
lease volumes penetrating the secondary market could cause gains to subside.

Legal Structure Integrity: The legal structure of the transaction should
provide that a bankruptcy of HCA would not impair the timeliness of payments
on the securities.

Stable Origination/Underwriting/Servicing: Fitch believes HCA to be a capable
originator, underwriter, and servicer, as evidenced by historical managed
portfolio delinquency and loss experience as well as securitization
performance.

Rating Sensitivity

Unanticipated decreases in the value of returned vehicles and/or increases in
the frequency of defaults and loss severity on defaulted receivables could
produce loss levels higher than the base case and could result in potential
rating actions on the notes. Fitch evaluated the sensitivity of the ratings
assigned to HALST 2013-A to increased credit and residual losses over the life
of the transaction. Fitch's analysis found that the transaction displays
relatively little sensitivity to increased defaults and credit losses, showing
downgrades of only one rating category even under Fitch's severe (2.5 times
base case loss) scenario. The transaction shows significantly more sensitivity
to residual loss volatility, though even under Fitch's severe scenario, the
class A notes would be expected to retain an investment grade rating while the
class B notes would be expected to pay in full.

Fitch's stress and rating sensitivity analyses are discussed in the presale
report titled 'Hyundai Auto Lease Securitization Trust 2013-A', dated Feb. 25,
2013, which is available on Fitch's web site.

Additional information is available at 'www.fitchratings.com'. The ratings
above were solicited by, or on behalf of, the issuer, and therefore, Fitch has
been compensated for the provision of the ratings.

Applicable Criteria and Related Research:

--'Global Structured Finance Rating Criteria', June 6, 2012;

--'Criteria for Rating U.S. Auto Lease ABS', May 14, 2012;

--'Counterparty Criteria for Structured Finance Transactions, May 30, 2012;

--'Structured Finance Tranche Thickness Metrics', July 29, 2011.

Applicable Criteria and Related Research

Structured Finance Tranche Thickness Metrics

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=646951

Counterparty Criteria for Structured Finance Transactions

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=678938

Criteria for Rating U.S. Auto Lease ABS

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=678137

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=679923

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Contact:

Fitch Ratings
Primary Analyst
Bradley Sohl, +1-312-368-3127
Senior Director
Fitch Ratings, Inc.
70 W. Madison Street
Chicago, IL 60602
or
Secondary Analyst
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Director
or
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Du Trieu, +1-312-368-0503
Senior Director
or
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