Fitch: U.S. Auto ABS Upgrades in July Reflect Stable Collateral Performance.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- U.S. auto asset-backed securities Asset-backed security A security that is collateralized by loans, leases, receivables, or installment contracts on personal property, not real estate. asset-backed security A debt security collateralized by specific assets. continued to drive the positive ratings momentum for the U.S. term ABS market in July, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Fitch Ratings Fitch Ratings An international rating agency for financial institutions, insurance companies, and corporate, sovereign, and municipal debt. Fitch Ratings has headquarters in New York and London and is wholly owned by FIMALAC of Paris. in its latest Credit Action Report. Fitch issued a total of fifteen upgrades in the auto (14) and small business loan (one) sectors in July. 'Auto ABS continues to perform well thanks to stable collateral performance and increased available credit enhancement Credit Enhancement A method whereby a company attempts to improve its debt or credit worthiness. Notes: Credit enhancements take many different forms. An example of a credit enhancement would be conversion rights added on to a debt instrument in order to lower the issuing ,' said Kevin D'Albert, Director, Fitch Ratings. Over the past three months, Fitch raised a total of 34 ratings in the prime auto sector. Fitch also issued 15 downgrades in July compared with 39 the previous month, with negative rating activity mostly in aircraft (14) and equipment lease (one) ABS. 'Despite signs of improvement,' said D'Albert, 'negative rating activity continued to be focused in the commercial finance sector, reflecting sustained industry and collateral performance weakness,' said D'Albert. The term ABS Credit Action Report (CAR) discusses credit issues impacting the term ABS market and presents monthly and year-to-date credit rating statistics for non-mortgage term consumer and commercial ABS products. Coverage of consumer assets includes auto, credit card, student loans, and time share receivables, while commercial-related assets include aircraft, equipment, franchise loan, health care, small business loan, and tobacco settlements. In addition, the report lists current presale reports and gives details about other ABS credit research. The 'Term ABS Credit Action Report: June 2005' is available on the Fitch Ratings web site at www.fitchratings.com. Fitch's rating definitions and the terms of use Terms of Use are rules set up by the owner of an intellectual property or service to govern how they may be legally used. In many cases, terms of service are used as a contractual agreement between a company and users of a service they provide. of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures Policies and Procedures are a set of documents that describe an organization's policies for operation and the procedures necessary to fulfill the policies. They are often initiated because of some external requirement, such as environmental compliance or other governmental are also available from the 'Code of Conduct' section of this site. |
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