Ford Auto Securitization Trust Series 2017-R5 C$519.25 Million Notes Assigned Ratings

Stocks and Financial Services Press Releases Wednesday October 25, 2017 09:14
NEW YORK--25 Oct--S&P Global Ratings
NEW YORK (S&P Global Ratings) Oct. 24, 2017--S&P Global Ratings today assigned its ratings to Ford Auto Securitization Trust's C$519.25 million asset-backed notes series 2017-R5 (see list).
The note issuance is an asset-backed securities transaction backed by a pool of Canadian dollar-denominated fixed-rate prime auto loan receivables originated by Ford Credit Canada Co.
The ratings reflect:
  • The availability of approximately 14.2% and 12.3% credit support to the class A and B notes, respectively, based on stressed break-even cash flow scenarios. These credit support levels provide coverage of more than 5.0x and 4.5x coverage of our expected cumulative net loss range of 1.00%-1.20% for the class A and B notes, respectively.
  • Our expectation that under a moderate, or 'BBB', stress scenario, all else being equal, the ratings on the class A and B notes would not be lowered. This is within the rating tolerance for 'AAA (sf)' and 'AA (sf)' rated securities, as outlined in our credit stability criteria (see " Methodology: Credit Stability Criteria," published May 3, 2010).
  • The credit enhancement in the form of subordination, overcollateralization, a reserve account, the yield supplement overcollateralization amount, and excess spread.
  • The timely interest and full principal payments made under stressed cash flow modeling scenarios that we deem appropriate for the assigned ratings.
  • Ford Credit Canada Co.'s extensive securitization performance history.
  • The collateral pool and characteristics of the collateral pool being securitized, historical collateral performance, and our forward-looking view of the Canadian economy.
  • The transaction's payment structure, cash flow mechanics, and legal structure.

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