Fitch Affirms 3 Classes of Ford Credit Auto Owner Trust 2014-REV2
--Class A at 'AAAsf'; Outlook Stable;
--Class B at 'AAsf'; Outlook Stable;
--Class C at 'Asf'; Outlook Stable.
KEY RATING DRIVERS
The rating affirmations reflect loss coverage levels consistent with current ratings. As of the August 2016 reporting period, cumulative net losses totalled 52 basis points (bps) for 2014-REV2. The transaction is currently revolving, and loss performance to date continues to be below Fitch's initial base case loss proxy. The pool composition currently is consistent with initial pool characteristics, and therefore Fitch's current loss proxy remains unchanged from the initial loss proxy.
The ratings reflect the quality of Ford Motor Credit Company's (FMCC) retail auto loan originations, the sound financial and legal structure of the transaction, and the strength of the servicing provided by FMCC.
RATING SENSITIVITIES
Unanticipated increases in the frequency of defaults and loss severity could produce loss levels higher than the current projected base case loss proxy and impact available loss coverage and multiples levels for the transaction. Lower loss coverage could impact ratings and Rating Outlooks, depending on the extent of the decline in coverage.
In Fitch's initial review of the transaction, the notes were found to have limited sensitivity to a 1.5x and 2.5x increase of Fitch's base case loss expectation. To date, the transaction has exhibited stable performance with losses within Fitch's initial expectations with rising loss coverage and multiple levels. As such, a material deterioration in performance would have to occur within the asset pool to have potential negative impact on the outstanding ratings.
USE OF THIRD-PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G-10
Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action.
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