April 15 (The following statement was released by the rating agency)
Fitch Ratings expects to assign the following ratings
to the Honda Auto Receivables 2013-2 Owner Trust notes:
--$283,000,000 class A-1 'F1+sf';
--$313,000,000 class A-2 'AAAsf'; Outlook Stable;
--$294,000,000 class A-3 'AAAsf'; Outlook Stable;
--$110,000,000 class A-4 'AAAsf'; Outlook Stable.
Key Rating Drivers
Strong Credit Quality: The credit quality of 2013-2, as measured by the weighted
average (WA) Fair Isaac Corp. (FICO) score of 752 and internal credit score
tiering, is consistent with 2013-1 and prior 2012 and 2011 pools. A major
portion of the 2013-2 pool is subvented. New vehicles total 86.41% in 2012-3,
consistent with prior transactions, and the pool has 12.61 months of seasoning.
Consistent Credit Enhancement Structure: The cash flow distribution is a
sequential-pay structure, consistent with prior transactions. Initial hard
credit enhancement (CE) is 2.75% (subordination of 2.50% and a 0.25% reserve). A
yield supplement account (YSA) boosts the effective WA APR and, thus, excess
spread (XS) is higher, which totals 2.25% in 2013-2.
Strong Portfolio/Securitization Performance: Losses and delinquencies on AHFC's
portfolio and 2009-2012 securitizations are improved over those of 2006-2008,
supported by strong credit quality, enhanced servicing policies, improvement in
the economy (albeit volatile) and strong recovery rates.
Stable Corporate Health: Fitch rates AHFC 'F1' and its parent, Honda, 'F1/A'
with a Stable Rating Outlook. AHFC has recorded positive corporate financial
results in recent years, while the overall health of Honda has remained strong.
Consistent Origination/Underwriting/Servicing: AHFC demonstrates capabilities as
originator, underwriter, and servicer, as evidenced by historical portfolio
delinquency and loss experience and securitization performance. Fitch deems AHFC
capable to adequately service the 2013-2 transaction.
Legal Structure Integrity: The legal structure of the transaction should provide
that a bankruptcy of AHFC would not impair the timeliness of payments on the