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Fitch Ratings Assigns Ratings to Ford Auto Securitization Trust II, Series 2025-A

Strategic Insights

— 1 min read

The Ford Auto Securitization Trust II, Series 2025-A has been rated by Fitch Ratings, with the ratings reflecting the trust's strong credit quality and adequate originating, underwriting, and servicing abilities. The trust's pool consists of prime obligors with a weighted average FICO score of 777, and 96.8% of the pool consists of new vehicles. The pool has a lower concentration of 84-month loans at 29.3%, compared to 34.4% in the previous series.

Key Takeaways:

  • The trust's strong credit quality is reflected in the ratings, with a cumulative net loss (CNL) proxy of 1.00% and a payment structure that provides sufficient credit enhancement.
  • The trust's operating and servicing risks are deemed consistent with recent series, with FCCC demonstrating adequate abilities as originator, underwriter, and servicer.
  • The trust's loan portfolio has a strong concentration of new vehicles, with 96.8% of the pool consisting of new vehicles.
  • The trust's credit enhancement is sufficient to withstand the CNL proxy of 1.00% for all classes of notes.
  • The trust's rating sensitivity analysis indicates that unanticipated increases in the frequency of defaults could produce CNL levels that are higher than the rating case and would likely result in declines of credit enhancement and remaining net loss coverage available to the notes.

Statistics:

  • The trust's CNL proxy is 1.00%.
  • The payment structure provides 5.25% initial hard credit enhancement for class A notes, 2.25% for class B notes, and 0.25% for class C notes.
  • The pool consists of 96.8% new vehicles.
  • The trust's weighted average FICO score is 777.
  • The trust's concentration of 84-month loans is 29.3%.

Sources:

  • Fitch Ratings, "U.S. Auto Loan ABS Rating Criteria" (pub. 05 Oct 2023)
  • Fitch Ratings, "Structured Finance and Covered Bonds Counterparty Rating Criteria" (pub. 29 Nov 2023)
  • Fitch Ratings, "Global Structured Finance Rating Criteria" (pub. 18 Nov 2024)
  • Fitch Ratings, "Ford Auto Securitization Trust II, Series 2025-A" (pub. unmentioned)

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