-- Hyundai Auto Receivables Trust 2013-A's issuance is an ABS
securitization backed by prime auto loan receivables.
-- We assigned our preliminary ratings to the class A, B, and C notes.
-- The preliminary ratings reflect our view of the transaction's credit
enhancement, the timely interest and principal payments made under the
stressed cash flow modeling scenarios, and the collateral characteristics of
the securitized pool of prime automobile loans, among other factors.
NEW YORK (Standard & Poor's) Jan. 22, 2013--Standard & Poor's Ratings Services
today assigned its preliminary ratings to Hyundai Auto Receivables Trust
2013-A's $1,313,580,000 asset-backed notes series 2013-A (see list).
The note issuance is an asset-backed securitization backed by prime auto loan
The preliminary ratings are based on information as of Jan. 22, 2013.
Subsequent information may result in the assignment of final ratings that
differ from the preliminary ratings.
The preliminary ratings reflect our view of:
-- The availability of approximately 12.2% credit support at the
preliminary 'AAA (sf)' rating level, 10.6% at the 'AA+ (sf)' level, and 7.4%
at the 'A+ (sf)' level (based on stressed cash flow scenarios), including
excess spread, which provides more than 5.0x, 4.5x, and 3.33x coverage of our
1.40%-1.60% expected loss range for the notes.
-- The ratings on the notes remaining within one category of the 'AAA
(sf)', 'AA+ (sf)', and 'A+ (sf)' ratings under a moderate stress scenario of
2.0x our expected net loss level. This is consistent with our credit stability
criteria (for more information, see "Methodology: Credit Stability Criteria,"
published May 3, 2010).
-- The credit enhancement in the form of subordination,
overcollateralization, a reserve account, a yield supplement
overcollateralization amount, and excess spread.
-- The timely interest and principal payments made under the stressed
cash flow modeling scenarios that we believe are consistent with the assigned
-- The collateral characteristics of the securitized pool of prime
-- Hyundai Capital America's (formerly known as Hyundai Motor Finance
Co.) extensive securitization performance history since 2001.
-- The transaction's payment and legal structures.
STANDARD & POOR'S 17G-7 DISCLOSURE REPORT
SEC Rule 17g-7 requires an NRSRO, for any report accompanying a credit rating
relating to an asset-backed security as defined in the Rule, to include a
description of the representations, warranties and enforcement mechanisms
available to investors and a description of how they differ from the
representations, warranties and enforcement mechanisms in issuances of similar
The Standard & Poor's 17g-7 Disclosure Report included in this credit rating
report is available at "RELATED CRITERIA AND RESEARCH
-- Principles Of Credit Ratings, Feb. 16, 2011
-- General Methodology And Assumptions For Rating U.S. Auto Loan
Securitizations, Jan. 11, 2011
-- Methodology: Credit Stability Criteria, May 3, 2010
-- Standard & Poor's Revises Criteria Methodology For Servicer Risk
Assessment, May 28, 2009
-- Presale: Hyundai Auto Receivables Trust 2013-A, Jan. 22, 2013
-- Ratings On Hyundai Motor and Kia Motors Unaffected By Overstated
Fuel-Economy Labels In The U.S, Nov. 7, 2012
-- Hyundai Motor Co., Oct. 22, 2012
-- Hyundai Capital America 'BBB+' Rating Affirmed, Outlook Remains
Stable; Proposed Senior Unsecured Notes Rated 'BBB+', Sept. 24, 2012
-- Review of Six Hyundai Auto Receivables Trust Transactions Yields Five
Upgrades, 13 Affirmations, July 6, 2012
-- Global Structured Finance Scenario And Sensitivity Analysis: The
Effects Of The Top Five Macroeconomic Factors, Nov. 4, 2011
-- Two Hyundai Auto Receivables Trust Series 2006-B Ratings Raised; Nine
Ratings Affirmed On Four Series, Oct. 4, 2010
PRELIMINARY RATINGS ASSIGNED
Hyundai Auto Receivables Trust 2013-A
Class Rating Type Interest Amount
rate (mil. $)(i)
A-1 A-1+ (sf) Senior Fixed 305.00
A-2 AAA (sf) Senior Fixed 428.00
A-3 AAA (sf) Senior Fixed 374.00
A-4 AAA (sf) Senior Fixed 143.20
B AA+ (sf) Subordinate Fixed 25.02
C A+ (sf) Subordinate Fixed 38.56
(i)The size of these tranches will be determined on the pricing date.