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American Honda Finance leads captives with lowest debt-to-equity ratio

American Honda Finance Corp.’s short-term debt rating was reaffirmed with a stable outlook by Fitch Ratings, thanks to a low corporate leverage ratio and credit losses, which are the lowest among its captive finance peers, Michael Taiano, Fitch senior director of the Financial Institutions Group, told Auto Finance News. “Honda Finance has the lowest debt […]

Ally Financial scores investment-grade rating

Ally Financial’s long-term default rating has reached investment-grade status after an upgrade by Fitch Ratings, thanks to a boost in profitability stemming from increased used-car originations. The upgrade is a plus for Ally since investment-grade paper is typically in higher demand by investors, Michael Taiano, senior director of the Financial Institutions Group at Fitch Ratings, […]

Dealership Financing Slips as Customers Prefer Online Options, Survey Shows

Consumers are increasingly opting to skip the dealership when it comes to getting their next auto loan, according to fresh data from Fico. Published last week, Fico’s 2019 U.S. Consumer Survey of Vehicle Finance Perceptions examined how consumers looked at the financing of their vehicle purchases and how auto finance companies are currently meeting their […]

Volkswagen Reenters Capital Markets With $1B Securitization

Volkswagen’s U.S. captive finance arm, Volkswagen Credit Inc., is reentering the prime ABS space with a $1 billion issuance thanks to stronger collateral and credit enhancements, according to presale reports from S&P Global Ratings and Fitch Ratings. Volkswagen Auto Loan Enhanced Trust (VALET) 2018-1’s issuance is VW Credit’s first auto loan securitization since 2014. The […]