OREANDA-NEWS. S&P Global Ratings today assigned its preliminary ratings to Hyundai Auto Receivables Trust 2016-B's $1.2 billion auto loan asset-backed notes series 2016-B (see list).

The note issuance is an asset-backed securities transaction backed by prime auto loan receivables.

The preliminary ratings are based on information as of Sept. 8, 2016. Subsequent information may result in the assignment of final ratings that differ from the preliminary ratings.

The preliminary ratings reflect: The availability of approximately 11.0% credit support at the 'AAA' rating level, 9.3% at the 'AA+' level, 6.8% at the 'AA-' level, and 5.0% at the 'A-' level (based on stressed cash flow scenarios), including excess spread, which provide more than 5.00x, 4.50x, 3.67x, and 2.67x coverage, respectively, of our 1.50%-1.70% expected loss range for the notes. The likelihood that the ratings on the notes will remain within one category of the preliminary 'AAA (sf)', 'AA+ (sf)', 'AA - (sf)', and 'A - (sf)' ratings under a moderate stress scenario of 2.00x our expected net loss level, consistent with our credit stability criteria (for more information, see "Methodology: Credit Stability Criteria," published May 3, 2010).The credit enhancement in the form of subordination, overcollateralization, a reserve account, a yield supplement overcollateralization amount, and excess spread. The transaction's ability to make timely interest and principal payments under the stressed cash flow modeling scenarios that we believe are consistent with the assigned preliminary ratings. The collateral characteristics of the securitized pool of prime automobile loans. Hyundai Capital America's extensive securitization performance history (formerly Hyundai Motor Finance Co.) since 2001.The transaction's payment and legal structures.