Fitch Rates Ford Credit Auto Owner Trust 2015-B

CHICAGO--(BUSINESS WIRE)-- Fitch Ratings assigns the following ratings and Outlooks to the notes issued by Ford Credit Auto Owner Trust 2015-B:

--$440,000,000 class A-1 'F1+sf';

--$325,000,000 class A-2A 'AAAsf'; Outlook Stable;

--$265,000,000 class A-2B 'AAAsf'; Outlook Stable;

--$587,800,000 class A-3 'AAAsf'; Outlook Stable;

--$132,590,000 class A-4 'AAAsf'; Outlook Stable;

--$55,270,000 class B 'AAsf'; Outlook Stable;

--$36,850,000 class C 'Asf'; Outlook Stable;

--$36,850,000 class D 'NRsf'.

KEY RATING DRIVERS

Stable Credit Quality: The 2015-B pool is consistent with prior deals with a weighted average (WA) FICO score of 731, and 89.3% new vehicle loans. The pool is geographically diverse, has WA seasoning of 8.0 months and loans with terms of 61 months or more total 46.4%.

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% non-declining 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. Fitch's initial base case cumulative net loss (CNL) is 1.65%. Pool-factor projections of recent securitizations suggest 2015-B could have a CNL within 0.80% assuming stable macroeconomic conditions.

Stable Corporate Performance: Fitch's current long-term Issuer Default Ratings for Ford Credit and its parent company, Ford Motor Company, are 'BBB-' with a Positive Outlook.

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-B.

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-B 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.

Additional Disclosures

Solicitation Status

https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=985353

Endorsement Policy

https://www.fitchratings.com/jsp/creditdesk/PolicyRegulation.faces?context=2&detail=31

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.

View source version on businesswire.com: http://www.businesswire.com/news/home/20150526006260/en/

Fitch Ratings
Primary Analyst
Thomas Kaiser, CPA, +1-312-368-3338
Associate Director
Fitch Ratings, Inc.
70 West Madison St.
Chicago, IL 60602
or
Secondary Analyst
Andrew Tinari, +1-312-368-3127
Analyst
or
Committee Chairperson
Tracy Wan, +1-212-908-0171
Senior Director
or
Media Relations, New York
Sandro Scenga, +1-212-908-0278
[email protected]

Source: Fitch Ratings

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