TEXT-S&P assigns Hyundai Auto Receivables 2013-A notes preliminary rating
OVERVIEW -- Hyundai Auto Receivables Trust 2013-A's issuance is an ABS securitization backed by prime auto loan receivables. -- We assigned our preliminary ratings to the class A, B, and C notes. -- The preliminary ratings reflect our view of the transaction's credit enhancement, the timely interest and principal payments made under the stressed cash flow modeling scenarios, and the collateral characteristics of the securitized pool of prime automobile loans, among other factors. NEW YORK (Standard & Poor's) Jan. 22, 2013--Standard & Poor's Ratings Services today assigned its preliminary ratings to Hyundai Auto Receivables Trust 2013-A's $1,313,580,000 asset-backed notes series 2013-A (see list). The note issuance is an asset-backed securitization backed by prime auto loan receivables. The preliminary ratings are based on information as of Jan. 22, 2013. Subsequent information may result in the assignment of final ratings that differ from the preliminary ratings. The preliminary ratings reflect our view of: -- The availability of approximately 12.2% credit support at the preliminary 'AAA (sf)' rating level, 10.6% at the 'AA+ (sf)' level, and 7.4% at the 'A+ (sf)' level (based on stressed cash flow scenarios), including excess spread, which provides more than 5.0x, 4.5x, and 3.33x coverage of our 1.40%-1.60% expected loss range for the notes. -- The ratings on the notes remaining within one category of the 'AAA (sf)', 'AA+ (sf)', and 'A+ (sf)' ratings under a moderate stress scenario of 2.0x our expected net loss level. This is consistent with our credit stability criteria (for more information, see "Methodology: Credit Stability Criteria," published May 3, 2010). -- The credit enhancement in the form of subordination, overcollateralization, a reserve account, a yield supplement overcollateralization amount, and excess spread. -- The timely interest and principal payments made under the stressed cash flow modeling scenarios that we believe are consistent with the assigned preliminary ratings. -- The collateral characteristics of the securitized pool of prime automobile loans. -- Hyundai Capital America's (formerly known as Hyundai Motor Finance Co.) extensive securitization performance history since 2001. -- The transaction's payment and legal structures. STANDARD & POOR'S 17G-7 DISCLOSURE REPORT SEC Rule 17g-7 requires an NRSRO, for any report accompanying a credit rating relating to an asset-backed security as defined in the Rule, to include a description of the representations, warranties and enforcement mechanisms available to investors and a description of how they differ from the representations, warranties and enforcement mechanisms in issuances of similar securities. The Standard & Poor's 17g-7 Disclosure Report included in this credit rating report is available at "RELATED CRITERIA AND RESEARCH Related Criteria -- Principles Of Credit Ratings, Feb. 16, 2011 -- General Methodology And Assumptions For Rating U.S. Auto Loan Securitizations, Jan. 11, 2011 -- Methodology: Credit Stability Criteria, May 3, 2010 -- Standard & Poor's Revises Criteria Methodology For Servicer Risk Assessment, May 28, 2009 Related Research -- Presale: Hyundai Auto Receivables Trust 2013-A, Jan. 22, 2013 -- Ratings On Hyundai Motor and Kia Motors Unaffected By Overstated Fuel-Economy Labels In The U.S, Nov. 7, 2012 -- Hyundai Motor Co., Oct. 22, 2012 -- Hyundai Capital America 'BBB+' Rating Affirmed, Outlook Remains Stable; Proposed Senior Unsecured Notes Rated 'BBB+', Sept. 24, 2012 -- Review of Six Hyundai Auto Receivables Trust Transactions Yields Five Upgrades, 13 Affirmations, July 6, 2012 -- Global Structured Finance Scenario And Sensitivity Analysis: The Effects Of The Top Five Macroeconomic Factors, Nov. 4, 2011 -- Two Hyundai Auto Receivables Trust Series 2006-B Ratings Raised; Nine Ratings Affirmed On Four Series, Oct. 4, 2010 PRELIMINARY RATINGS ASSIGNED Hyundai Auto Receivables Trust 2013-A Class Rating Type Interest Amount rate (mil. $)(i) A-1 A-1+ (sf) Senior Fixed 305.00 A-2 AAA (sf) Senior Fixed 428.00 A-3 AAA (sf) Senior Fixed 374.00 A-4 AAA (sf) Senior Fixed 143.20 B AA+ (sf) Subordinate Fixed 25.02 C A+ (sf) Subordinate Fixed 38.56 (i)The size of these tranches will be determined on the pricing date.
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