...Robust Rating Upgrades: The number and pace of rating upgrades in the prime auto loan ABS sector are solid. Even during an extremely weak economic period, prime auto loan asset performance and the pace of upgrades were generally resilient. Screeners Serve as Key Tool: Fitch Ratings reviews prime auto loan ABS, allowing it to easily compare and track performance trends across a large segment of its rated portfolio. Rating Through the Cycle: The capability to forecast an updated base case cumulative net loss (CNL) affords Fitch the ability to take timely rating actions on its rated portfolio. While upgrades have far exceeded downgrades, even under stressed scenarios, prime auto loan ABS ratings remained stable. Strong Collateral Pool Mix: Since the Great Recession, collateral pools within the prime auto loan ABS sector have improved, contributing to consistent positive rating actions. Notable trends include migration to higher FICOs and declining LTV. Index a Leading Indicator for Ratings:...
