Feb 19 - Fitch Ratings expects to assign the following ratings to the Ford Credit Auto Owner
Trust 2013-A notes:
--$307,100,000 class A-1 'F1+sf';
--$415,300,000 class A-2 'AAAsf'; Outlook Stable;
--$420,700,000 class A-3 'AAAsf'; Outlook Stable;
--$106,850,000 class A-4 'AAAsf'; Outlook Stable;
--$39,470,000 class B 'AAsf'; Outlook Stable;
--$26,310,000 class C 'Asf'; Outlook Stable;
--$26,310,000 class D 'BBBsf'; Outlook Stable.
Key Rating Drivers
Stable Credit Quality: 2013-A pool is relatively consistent with prior deals.
The WA FICO score is 726 with 87.45% of new vehicles. The pool is geographically
diverse with approximately seven months of seasoning, and consists of 40.86% of
the retail contracts with terms more than 60 months.
Adequate Credit Enhancement Structure: The cash flow distribution is a
sequential-pay structure, consistent with prior transactions. Initial hard
credit enhancement (CE) for the class A notes totals 5.50%, consisting of 7.00%
subordination and a 0.50% nondeclining reserve offset by undercollateralization
of 2.00% on an adjusted pool basis.
Improved Portfolio/Securitization Performance: Losses on Ford Credit's portfolio
and 2009-2012 FCAOT securitizations declined, supported by the improving, albeit
volatile, U.S. economy and strong used vehicle values resulting in higher
Positive Corporate Performance: Fitch currently rates the long-term Issuer
Default Rating of Ford Motor Co., the parent of Ford Credit and Ford Credit,
'BBB-' with a Stable Rating Outlook.
Strong Wholesale Vehicle Market (WVM): The U.S. WVM is healthy in early 2013.
However, Fitch remains cautious of the potential impact of general economic
weakness and rising fuel prices on demand for and values of used vehicles.
Consistent Origination/Underwriting/Servicing: Ford Credit demonstrates good
capabilities as originator, underwriter, and servicer, evidenced by historical
delinquency and loss performance of its managed portfolio and securitizations.
Fitch deems Ford Credit capable to adequately service 2013-A.
Integrity of Legal Structure: The legal structure of the transaction should
provide that a bankruptcy of Ford Credit would not impair the timeliness of
payments on the securities.