May 20 (The following statement was released by the rating agency)
Fitch Ratings expects to assign the following ratings to
World Omni Auto Receivables Trust 2013-A:
--$245,000,000 class A-1 notes 'F1+sf';
--$275,000,000 class A-2 notes 'AAAsf'; Outlook Stable;
--$270,000,000 class A-3 notes 'AAAsf'; Outlook Stable;
--$94,934,000 class A-4 notes 'AAAsf'; Outlook Stable;
--$18,957,000 class B notes 'AAsf'; Outlook Stable.
Fitch's stress and rating sensitivity analysis are discussed in the presale
report titled 'World Omni Auto Receivables Trust 2013-A', dated May 20, 2013,
which is available at 'www.fitchratings.com'.
KEY RATING DRIVERS
Consistent Pool Quality: 2013-A exhibits strong credit quality with a weighted
average (WA) FICO score of 727. Approximately 92% of the pool consists of new
vehicle loans, and the pool is geographically concentrated in the southeastern
U.S., consistent with historical World Omni originations.
High Percentage of Extended-Term Loans: While the concentration of loans with
original terms greater than 60 months is consistent with 2012 pools, it is
higher than in prior transactions. Extended-term loans have historically
produced higher loss rates and have been specifically accounted for in Fitch's
Adequate Credit Enhancement Structure: Overall credit enhancement (CE) in 2013-A
is consistent with 2012 transactions, with 4.55% hard CE for class A notes,
2.50% hard CE for class B notes and 3.06% of annual excess spread. Under Fitch's
analysis, the structure is able to support stressed losses commensurate with the
Improving Portfolio/Securitization Performance: World Omni's portfolio and
securitization delinquency and loss performance has improved since 2009, driven
by stronger credit quality of originations and enhanced servicing policies;
support from the improving, albeit fragile, U.S. economic recovery; and strong
used vehicle values.
Consistent Origination/Underwriting/Servicing: Fitch believes World Omni to be a
capable originator, underwriter and servicer, as evidenced by the historical
performance of its managed portfolio and securitizations.
Legal Structure Integrity: The legal structure of the transaction should provide
that a bankruptcy of World Omni would not impair the timeliness of payments on
Unanticipated increases in the frequency of defaults and loss severity on
defaulted receivables could produce loss levels higher than the base case and
could result in potential rating actions on the notes. Fitch evaluated the
sensitivity of the ratings assigned to both classes of World Omni Auto Receivables Trust 2013-A
to increased losses over the life of the transaction.
Fitch's analysis found that both classes of notes display some sensitivity to
increased defaults and losses, showing potential downgrades of one category
under Fitch's moderate (1.5x base case loss) scenario. Both classes of notes
could experience downgrades 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.