Fitch Ratings has affirmed four classes of asset-backed floating-rate notes from
The Outlook is Stable. The transactions are backed by pools of first-ranking Australian automotive loan receivables originated by
RATING ACTIONS
Entity / Debt
Rating
Prior
A AU3FN0069100
LT
AAAsf
Affirmed
AAAsf
A-X AU3FN0069118
LT
AAAsf
Affirmed
AAAsf
A AU3FN0078267
LT
AAAsf
Affirmed
AAAsf
A-X AU3FN0078275
LT
AAAsf
Affirmed
AAAsf
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VIEW ADDITIONAL RATING DETAILS
KEY RATING DRIVERS
Stable Asset Performance: Obligor default is a key assumption in our quantitative analysis. The performance of the underlying assets has been better than Fitch's base-case default expectations for
Weighted-average (WA) base-case remaining default expectations (and 'AAAsf' default multiples):
Base-case recovery expectations (and 'AAAsf' recovery haircuts) are as follows, all unchanged from closing:
The 30+ day arrears as of
Cumulative net losses at end-February were 0.5% for
Cumulative recoveries as of
Portfolio performance is supported by
No Updated Cash Flow Modelling: Cash flow analysis was not performed for the transactions, as the rated notes are rated at the highest possible level, credit enhancement has increased since closing and all other variables are in line with expectations. Excess spread has been variable due to the paydown of the Class A-X principal through the interest waterfall based on a pre-determined amortisation schedule. There have been no principal draws, liquidity draws or note charge-offs.
Low Operational and Servicing Risk: All receivables were originated by Plenti Finance, which demonstrates adequate capability as originator, underwriter and servicer.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade
Transaction performance may be affected by changes in market conditions and the economic environment. Weakening asset performance is strongly correlated with increasing levels of delinquencies and defaults that could reduce credit enhancement available to the notes.
Downgrade Sensitivity
Unanticipated increases in the frequency of defaults could produce loss levels higher than Fitch's base case and are likely to result in a decline in credit enhancement and remaining loss-coverage levels available to the notes. Decreased credit enhancement may make certain note ratings susceptible to negative rating action, depending on the extent of coverage decline. Hence, Fitch conducts sensitivity analysis by stressing a transaction's initial base-case assumptions. Fitch stresses the recovery rate to isolate the effect of a change in recovery proceeds at the borrower level.
For Fitch's previous rating sensitivities, please see:
rating action commentary for
rating action commentary for
Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade
The rated notes are at 'AAAsf', which is the highest level on Fitch's scale. The ratings cannot be upgraded and so upgrade sensitivities are not relevant.
USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10
Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action.
DATA ADEQUACY
Fitch has checked the consistency and plausibility of the information it has received about the performance of the asset pools and the transactions. Fitch has not reviewed the results of any third-party assessment of the asset portfolio information as part of its ongoing monitoring.
Prior to the transactions closing, Fitch reviewed the results of third-party assessments conducted on the asset portfolio information, and concluded that there were no findings that affected the rating analysis.
As part of its ongoing monitoring, Fitch reviewed a small targeted sample of the originator's origination files and found the information contained in the reviewed files to be adequately consistent with the originator's policies and practices and the other information provided to the agency about the asset portfolio.
Overall, and together with any assumptions referred to above, Fitch's assessment of the information relied upon for the agency's rating analysis, according to its applicable rating methodologies, indicates that it is adequately reliable.
REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING
The principal sources of information used in the analysis are described in the Applicable Criteria.
The issuer has informed Fitch that not all relevant underlying information used in the analysis of the rated notes is public.
ESG Considerations
The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. For more information on Fitch's ESG Relevance Scores, visit www.fitchratings.com/topics/esg/products#esg-relevance-scores.
Additional information is available on www.fitchratings.com
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