(Repeat for additioanl subscribers)
May 12 (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 Porsche Financial Auto Securitizaton Trust 2014-1 (PFAST 2014-1):
--$144,000,000 class A-1 notes 'F1+sf';
--$138,000,000 class A-2 notes 'AAAsf'; Outlook Stable;
--$138,000,000 class A-3 notes 'AAAsf'; Outlook Stable;
--$68,300,000 class A-4 notes 'AAAsf'; Outlook Stable.
KEY RATING DRIVERS
Strong Collateral Quality: PFAST 2014-1 has strong credit quality with a
weighted average (WA) FICO score of 781, 64.3% new vehicles and WA seasoning of
16.7 months. Porsche vehicles total 88%, and 2014-1 includes Bentley (10%) and
Lamborghini (2%) vehicles, the first time these brands are included in a PFAST
Adequate Credit Enhancement: PFAST 2014-1 is a sequential-pay structure. Initial
hard credit enhancement (CE) totals 2.75% (2.50% overcollateralization and
0.25% reserve [both of the initial adjusted pool balance]), down versus 2011-1.
Annual excess spread totals 2.73%. Under Fitch's analysis, the structure is able
to support stressed losses commensurate with the expected ratings.
Stable Portfolio/Securitization Performance: PFS' portfolio and securitization
is stable with low delinquencies and losses over the past three years.
Performance has been supported by the improving U.S. economic recovery and
stable used vehicle values.
Consistent Origination/Underwriting/Servicing: Fitch deems PFS an adequate
originator, underwriter and servicer to service 2014-1, as evidenced by its
historical portfolio and securitization delinquency and loss experience and
Legal Structure Integrity: The legal structure of the transaction should provide
that a bankruptcy of PFS would not impair the timeliness of payments on the
Unanticipated increases in the frequency of defaults and loss severity on
defaulted receivables could produce loss levels higher than the base case. In
turn, it could result in potentially adverse rating actions on the notes. Fitch
evaluated the sensitivity of the ratings assigned to all classes of PFAST 2014-1
to increased losses over the life of the transaction. Fitch's analysis found
that the notes display some sensitivity to increased defaults and losses. In
fact, they could lead to potential downgrades of up to one category under
Fitch's moderate (1.5x base case loss) scenario. The notes could experience
downgrades of up to two rating categories under Fitch's severe (2.5x base case
Key Rating Drivers and Rating Sensitivities are further described in Fitch's
presale report, available at 'www.fitchratings.com' or by clicking on the below
Fitch's analysis of the Representation and Warranties (R&W) of this transaction
can be found in Porsche Financial Auto Securitizaton Trust 2014-1--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: Porsche Financial Auto Securitization Trust
2014-1 (US ABS)