Fitch Affirms 9 and Upgrades 2 Classes of Ford Credit Auto Owner Trust

  Fitch Affirms 9 and Upgrades 2 Classes of Ford Credit Auto Owner Trust

Business Wire

NEW YORK -- October 18, 2013

As part of its ongoing surveillance, Fitch Ratings affirms nine and upgrades
two classes from the Ford Credit Auto Owner Trust (FCAOT) 2011-B and 2012-D
transactions as follows:

2011-B:

--Class A-3 affirmed at 'AAAsf'; Outlook Stable;

--Class A-4 affirmed at 'AAAsf'; Outlook Stable;

--Class B affirmed at 'AAAsf'; Outlook Stable;

--Class C upgraded to 'AAAsf' from 'AAsf'; Outlook revised to Stable from
Positive;

--Class D upgraded to 'AAsf' from 'Asf'; Outlook Positive.

2012-D:

--Class A-2 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 revised to Positive from Stable;

--Class C affirmed at 'Asf'; Outlook revised to Positive from Stable;

--Class D affirmed at 'BBBsf'; Outlook revised to Positive from Stable.

KEY RATING DRIVERS

The rating upgrades of the applicable classes in the series 2011-B transaction
are a result of strong loss coverage under Fitch's assumptions and stresses in
cash flow modeling. The affirmations on the remaining notes in both 2011-B and
2012-D reflect loss coverage levels consistent with current ratings. The
transactions have continued to perform well within Fitch's cumulative net loss
expectations to date.

The Positive Outlooks on four of the classes of notes reflect Fitch's view
that the notes will continue to perform well and may warrant a review for a
potentially positive rating action in the next six months. In 2012-D, the
multiples produced in cash flow modeling for the subordinate notes were strong
enough to warrant an upgrade. However, Fitch decided upgrades for the
subordinate notes to be inappropriate at this time given the pool factor of
the transaction.

The ratings reflect the quality of Ford Motor Credit Company's (FMCC) retail
auto loan originations, the sound financial and legal structure of the
transaction, and the strength of the servicing provided by FMCC.

RATING SENSITIVITIES

Unanticipated increases in the frequency of defaults and loss severity could
produce loss levels higher than the current projected base case loss proxies
and impact available loss coverage and multiples levels for the transactions.
Lower loss coverage could impact the ratings and Rating Outlooks depending on
the extent of the decline in coverage.

In Fitch's initial review of the transactions, the notes were found to have
limited sensitivity to a 1.5x and 2.5x increase of Fitch's base case loss
expectations. To date, the transactions have exhibited strong performance with
losses well within Fitch's initial expectations with rising loss coverage and
multiple levels. As such, a material deterioration in performance would have
to occur within the asset pools to have potential negative impact on the
outstanding ratings.

Fitch's analysis of the Representation and Warranties (R&W) of 2012-D can be
found in 'Ford Credit Auto Owner Trust 2012-D 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 April 17, 2012.

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and related research:

--'Rating Criteria for U.S. Auto Loan ABS' (April 10, 2013);

--'Global Structured Finance Rating Criteria'(May 24, 2013);

--'Ford Credit Auto Owner Trust 2012-D Appendix'(Aug. 22, 2013).

Applicable Criteria and Related Research:

Rating Criteria for U.S. Auto Loan ABS

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=704137

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=708661

Ford Credit Auto Owner Trust 2012-D -- Appendix

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=714318

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=805493

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Contact:

Fitch Ratings
Primary Analyst:
Timothy McNally, +1-212-908-0870
Analyst
Fitch Ratings, Inc.
One State Street Plaza
New York, NY 10004
or
Secondary Analyst:
Peter Chung, +1-212-908-0724
Director
or
Committee Chairperson:
John Bella, +1-212-908-0243
Managing Director
or
Media Relations:
Sandro Scenga, New York, +1 212-908-0278
sandro.scenga@fitchratings.com
 
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