Fitch Expects to Rate Nissan Auto Receivables 2013-B Owner Trust; Presale
NEW YORK -- July 22, 2013
Fitch Ratings expects to assign the following ratings to the Nissan Auto
Receivables 2013-B Owner Trust notes:
--$244,000,000 class A-1 'F1+sf';
--$328,000,000 class A-2 'AAAsf'; Outlook Stable;
--$328,000,000 class A-3 'AAAsf'; Outlook Stable;
--$100,000,000 class A-4 'AAAsf'; Outlook Stable.
KEY RATING DRIVERS
Consistent Collateral Pool: Despite 61-plus month loan terms increasing to
48.63% (the highest level ever in a NAROT pool), the collateral composition
and credit quality of 2013-B are generally consistent with those of prior
pools, with a 758 weighted average (WA) Fair Isaac Corp. (FICO) score, 95.75%
new vehicles and 97.40% Nissan vehicles. Additionally, the pool is
Sufficient Enhancement: 2013-B incorporates a sequential-pay structure,
consistent with prior transactions. Initial hard credit enhancement (CE)
totals 4.25% in 2013-B, consistent with recent transactions. Overall CE is
sufficient to cover the Fitch 'AAAsf'-stressed lifetime cumulative net loss
Strong Portfolio/Securitization Performance: NMAC portfolio and securitization
delinquencies and losses have declined in recent vintages, supported by the
U.S. economic recovery, healthy used vehicle values, NMAC's implementation of
tighter underwriting policies in 2009 to 2010 and high credit-quality
originations in the 2010 to 2013 vintages.
Stable Origination, Underwriting and Servicing Platform: Fitch believes NMAC
demonstrates adequate abilities as originator, underwriter and servicer for
Unstable Economic Outlook: The slow economic recovery and potential for
volatility could affect delinquencies and losses. Fitch's analysis accounts
for this risk by including poorer performing vintages from the recent
recession in deriving the base case loss proxy.
Integrity of Legal Structure: The legal structure of a transaction should
provide that a bankruptcy of NMAC would not impair the timeliness of payments
on the securities.
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Applicable Criteria and Related Research:
--'Global Structured Finance Rating Criteria'(May 25, 2013);
--'Rating Criteria for U.S. Auto Loan ABS' (April 10 2013);
--'Structured Finance Tranche Thickness Metrics' (July 29, 2011).
Applicable Criteria and Related Research: Nissan Auto Receivables 2013-B Owner
Trust (US ABS)
Global Structured Finance Rating Criteria
Rating Criteria for U.S. Auto Loan ABS
Structured Finance Tranche Thickness Metrics
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