Fitch Expects to Rate Hyundai Auto Receivables Trust 2014-B; Presale Issued

  Fitch Expects to Rate Hyundai Auto Receivables Trust 2014-B; Presale Issued  Business Wire  NEW YORK -- May 2, 2014  Fitch Ratings expects to assign the following ratings and Rating Outlooks to the notes issued by Hyundai Auto Receivables Trust 2014-B:  --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;  --Class C asset-backed notes 'Asf'; Outlook Stable;  --Class D asset-backed notes 'BBBsf'; Outlook Stable.  KEY RATING DRIVERS  Stable Collateral Quality: The 2014-B pool is consistent with 2014-A and 2013 pools, exhibiting a weighted average (WA) FICO score of 744, 94.6% of new vehicles and 5.8 months of seasoning. The WA LTV has increased versus recent pools; however, overall credit quality has improved considerably post-2008.  Sufficient CE Structure: Initial hard credit enhancement (CE) for the notes is unchanged versus recent transactions and excess spread is expected to be 2.02%, down from 2014-A (2.75%). Under Fitch's analysis with a base case CNL proxy of 1.65%, the structure is able to support stressed losses commensurate with the expected ratings.  Improved Loss Performance: HCA's portfolio and securitization losses declined significantly from peak 2008 levels, driven by stronger underwriting and credit quality as well as the improving U.S. economy and stable used vehicle values.  Stable Origination, Underwriting, and Servicing: HCA demonstrates adequate abilities as originator, underwriter, and servicer to service 2014-B, as evidenced by the historical performance of its managed portfolio and securitizations.  Integrity of the Legal Structure: The legal structure of the transaction should provide that a bankruptcy of HCA would not impair the timeliness of the payments on the securities.  RATING SENSITIVITIES  Unanticipated increases in the frequency of defaults and loss severity on defaulted receivables could produce loss levels higher than the base case. This in turn could result in Fitch taking negative rating actions on the notes. Fitch evaluated the sensitivity of the ratings assigned to Hyundai Auto Receivables Trust 2014-B to increased credit losses over the life of the transaction. Fitch's analysis found that the notes display limited sensitivity to increased defaults and losses, showing no expected impact on the rating of the notes under Fitch's moderate (1.5x base case loss) scenario. The notes could experience a downgrade of up to two rating categories under Fitch's severe (2.5x base case loss) scenario.  Key Rating Drivers and Rating Sensitivities are further described in the accompanying presale report, available at 'www.fitchratings.com' or by clicking on the above link.  Additional information is available at www.fitchratings.com.  Applicable Criteria and Related Research:  --'Global Structured Finance Rating Criteria' (May 24, 2013);  --'Rating Criteria for U.S. Auto Loan ABS' (April 7, 2013);  --'Structured Finance Tranche Thickness Metrics' (July 29, 2011);  --'Hyundai Auto Receivables Trust 2014-B -- Appendix' (May 2, 2014);  --'Hyundai Auto Receivables Trust 2014-B (May 2, 2014).  Applicable Criteria and Related Research: Hyundai Auto Receivables Trust 2014-B (US ABS)  http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=747803  Global Structured Finance Rating Criteria  http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=708661  Rating Criteria for U.S. Auto Loan ABS  http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=738718  Structured Finance Tranche Thickness Metrics  http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=646951  Additional Disclosure  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.  Contact:  Fitch Ratings Primary Analyst Autumn Mascio Director +1-212-908-0896 Fitch Ratings, Inc. 33 Whitehall St. New York, NY 10004 or Secondary Analyst Eugene Kushnir Associate Director +1-212 908-0830 or Committee Chairperson Du Trieu +1-312-368-2091 or Media Relations Sandro Scenga, +1 212-908-0278 sandro.scenga@fitchratings.com  
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