Fitch; Prime Auto ABS Less Volatile than Past Years

Fitch Ratings said today that the strengthening wholesale value market helped bolster auto ABS-asset values and overall performance, year-to-date, keeping a lid on loss severity and loss rate-for now. The agency said the outlook for 2013 asset performance is stable while the rating outlook is positive.

Fitch said Prime annualized net losses, or ANL had crept up three percent in August over July’s level but the increase was much less than what’s usually seen during this period. Fitch also reported strong used vehicle values in August, calling that ‘not typical’ for that month.

Overall the agency reported that August Prime, 60-day-plus delinquencies were 0.33%. That’s unchanged from July. It’s also 10.8% lower year-over-year. Prime delinquencies have averaged 0.34% in 2013, down from 0.39% in 2012. 

Meanwhile, subprime 60 day plus delinquencies were stable month over month at 3.21%. That’s 2.6% above July, but essentially unchanged year over year.

But, subprime annual net losses did jump 18.4% month over month to 5.27% in August, but were still 1.0% below August 2012.