Fitch Rates Ford Credit Auto Owner Trust 2015-A

NEW YORK--(BUSINESS WIRE)-- Fitch Ratings assigns the following ratings to the Ford Credit Auto Owner Trust 2015-A notes:

--$359,200,000 class A-1 'F1+sf';

--$215,000,000 class A-2A 'AAAsf'; Outlook Stable;

--$331,400,000 class A-2B 'AAAsf'; Outlook Stable;

--$483,000,000 class A-3 'AAAsf'; Outlook Stable;

--$111,780,000 class A-4 'AAAsf'; Outlook Stable;

--$47,380,000 class B 'AAsf'; Outlook Stable;

--$31,590,000 class C 'Asf'; Outlook Stable;

--$31,590,000 class D 'NR'.

KEY RATING DRIVERS

Stable Credit Quality: The 2015-A pool is consistent with prior deals, with a weighted average (WA) FICO score of 731 and 89.4% new vehicle loans. The pool is geographically diverse, has WA seasoning of 8.5 months and consists 44.7% of loans with terms of 61 months or more.

Adequate Credit Enhancement Structure: The cash flow distribution is a sequential-pay structure. Initial hard credit enhancement (CE) for the class A notes totals 5.50%, consisting of 7.00% subordination and a 0.50% nondeclining reserve, offset by undercollateralization of 2.00% on an adjusted pool basis.

Stable Portfolio/Securitization Performance: Delinquencies and losses on Ford Credit's portfolio and 2009-2014 securitizations are currently at low levels, supported by the improving U.S. economy and stable used vehicle values, although they are expected to soften over the next year.

Stable Corporate Performance: Fitch's current long-term Issuer Default Rating (IDR) for Ford Motor Company (Ford), parent of Ford Credit, and Ford Credit is 'BBB-', with a Positive Rating Outlook.

Slow Economic Recovery: A slower recovery and potential for volatility could affect delinquencies and losses. Fitch's analysis accounts for this risk by including poorer performing vintages from the recent recession in the base case loss analysis.

Consistent Origination/Underwriting/Servicing: Ford Credit demonstrates adequate abilities as an originator, underwriter and servicer, as evidenced by historical portfolio and securitizations' delinquency and loss performance. Fitch deems Ford Credit an adequate servicer to service 2015-A.

Integrity of Legal Structure: The legal structure of the transaction should provide that a bankruptcy of Ford Credit would not impair the timeliness of payments on the securities.

RATING SENSITIVITIES

Unanticipated increases in the frequency of defaults and loss severity on defaulted receivables could produce loss levels higher than the base case. This could result in potential rating actions on the notes. Fitch evaluated the sensitivity of the ratings assigned to all classes of Ford Credit Auto Owner Trust 2015-A to increased losses over the life of the transaction. Fitch's analysis found that the class B and C notes display some sensitivity to increased defaults and losses, showing potential downgrades of up to one category under Fitch's moderate (1.5x base case loss) scenario. All classes of notes could experience downgrades of up to two rating categories under Fitch's severe (2.5x base case loss) scenario.

Key Rating Drivers and Rating Sensitivities are further detailed in the accompanying presale report, available at 'www.fitchratings.com' or by clicking on the above link.

Additional information is available at www.fitchratings.com.

Applicable Criteria and Related Research:

--'Global Structured Finance Rating Criteria' (August 2014);

--'Rating Criteria for U.S. Auto Loan ABS' (April 2014);

--'Structured Finance Tranche Thickness Metrics' (July 2011);

--'Representations, Warranties, and Enforcement Mechanisms in Global Structured Finance' (October 2014);

--'Ford Credit Auto Owner Trust 2015-A (US ABS)' (March 2015);

--'Ford Credit Auto Owner Trust 2015-A - Appendix' (March 2015).

Applicable Criteria and Related Research:

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=754389

Rating Criteria for U.S. Auto Loan ABS

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=738718

Structured Finance Tranche Thickness Metrics

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=646951

Representations, Warranties and Enforcement Mechanisms in Global Structured Finance Transactions

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=799248

Ford Credit Auto Owner Trust 2015-A (US ABS)

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=863449

Ford Credit Auto Owner Trust 2015-A -- Appendix

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=863507

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=981836

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE '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 ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

Fitch Ratings
Primary Analyst
Eugene Kushnir, +1-212-908-0830
Associate Director
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Secondary Analyst
Puloma Mukherjee, +1-212-908-0131
Associate Director
or
Committee Chairperson
Du Trieu, +1-312-368-2091
Senior Director
or
Media Relations
Sandro Scenga, +1 212-908-0278 (New York)
[email protected]

Source: Fitch Ratings

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