(Repeat for additional subscribers)
June 2 (The following statement was released by the rating agency)
Fitch Ratings expects to assign the following ratings
and Rating Outlooks to the notes issued by AmeriCredit Automobile Receivables
Trust (AMCAR) 2014-2:
--$197,000,000 class A-1 'F1+sf';
--$391,110,000 class A-2-A/A-2-B 'AAAsf'; Outlook Stable;
--$264,240,000 class A-3 'AAAsf'; Outlook Stable;
--$91,830,000 class B 'AAsf'; Outlook Stable;
--$113,980,000 class C 'Asf'; Outlook Stable;
--$112,090,000 class D 'BBBsf'; Outlook Stable;
--$29,750,000 class E 'BBsf'; Outlook Stable.
KEY RATING DRIVERS
Stable Credit Quality: The 2014-2 pool displays relatively consistent credit
quality versus 2013 pools, with a 566 weighted average (WA) Fair Isaac Corp.
(FICO) score, and a 241 WA internal credit score. Extended term contracts
continue to account for the majority of the pool at 89.24%. New vehicles total
47.43% of the pool, consistent with prior AMCAR transactions.
Consistent Credit Enhancement: The cash flow distribution is a sequential-pay
structure. Initial hard credit enhancement (CE) is consistent with the prior
nine transactions. The reserve is 2% (non-declining), and initial
overcollateralization (OC) is 5.25%, growing to a target of 14.25% of the
outstanding pool balance (less the required reserve amount for the distributing
period). Of note, excess spread has decreased to one of the lowest levels seen
to date, at 8.59% per annum.
Stable Portfolio/Securitization Performance: Losses on GM Financial's managed
portfolio and securitizations declined to some of its lowest levels, given the
gradual economic recovery and stronger used vehicle values.
Stable Corporate Health: Fitch rates GM and GM Financial Company Inc. 'BB+' with
a Positive Rating Outlook. GM has recorded positive corporate financial results
since 2010. Fitch assessed the potential impact of GM/ GM-affiliated brand
vehicle recalls in relation to this transaction; Fitch expects this to have
limited to no impact on the 2014-2 pool.
Consistent Origination/Underwriting/Servicing: AFSI demonstrates adequate
abilities as originator, underwriter, and servicer, as evidenced by historical
portfolio delinquency and loss experience and securitization performance. Fitch
deems AFSI capable of adequately servicing this series.
Legal Structure Integrity: The legal structure of the transaction should provide
that a bankruptcy of GM Financial 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 each class of AmeriCredit Automobile
Receivables Trust 2014-2 to increased losses over the life of the transaction.
Fitch's analysis found that each class of notes displays some sensitivity to
increased defaults and losses, with some classes showing potential downgrades of
up to two rating categories under Fitch's moderate (1.5x base case loss)
scenario. Some classes of notes could experience downgrades of more than three
rating categories under Fitch's severe (2.5x base case loss) scenario.
Key rating drivers and rating sensitivities are further detailed in the
accompanying presale report at 'www.fitchratings.com' or by clicking on the
Fitch's analysis of the Representation and Warranties (R&W) of this transaction
can be found in 'AmeriCredit Automobile Receivables Trust 2014-2 --Appendix'.
These R&W are compared to those of typical R&W for the asset class as detailed
in Fitch's April 17, 2012 special report, 'Representations, Warranties, and
Enforcement Mechanisms in the Global Structured Finance Transactions'.
Link to Fitch Ratings' Report: AmeriCredit Automobile Receivables Trust 2014-2