TEXT-Fitch to rate Nissan Master Owner Trust Receivables 2013-A issues presale

Tue Feb 19, 2013 8:50am EST

Feb 19 - Fitch Ratings expects to rate Nissan Master Owner Trust Receivables (NMOTR), series 2013-A as follows:

--$600,000,000 class A notes 'AAAsf', Outlook Stable.

Fitch's stress and rating sensitivity analysis are discussed in the presale report released today, 'Nissan Master Owner Trust Receivables 2013-A' available at 'www.fitchratings.com'.

KEY RATING DRIVERS

Good Quality of Receivables: The receivables backing 2013-A include over 90% new vehicles and are mainly Nissan and Infiniti new and used vehicles, as well as a small portion of those of other manufacturers.

Asset Concentrations: Dealers are subject to specific concentration limits, mitigating the risk of individual dealer defaults and losses. Furthermore, the exposure to individual vehicle types, dealer credit ratings, and state concentrations are mitigated with concentration limits.

Strong Dealer Network: Based on a review of dealer financial metrics and NMAC's internal dealer risk ratings (categorized into four distinct groups), the financial health of the participating dealer network is currently viewed as strong, with the majority of dealers profitable in 2012.

Strong Trust Performance: NMOTR has continued to experience positive trends in overall performance, including elevated monthly payment rates (MPRs) and asset yields, low agings and delinquencies, and no dealer defaults and trust losses.

Sufficient Credit Enhancement: Initial credit enhancement (CE) for the class A notes is 19.90%, a decline from the prior series (21.10%), consisting of 19.50% overcollateralization (OC) and a 0.40% reserve (of the initial collateral balance). Structural features, including early amortization triggers, mitigate risks stemming from dealer/manufacturer defaults/bankruptcies.

Consistent Origination and Servicing: NMAC demonstrates adequate abilities as an originator, underwriter, and servicer, as evidenced by the historical delinquency and loss performance of NMOTR.

Legal Structure Integrity: The legal structure of the transaction provides that a bankruptcy of NMAC would not impair the timeliness of payments on the securities.

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