OREANDA-NEWS. Fitch Ratings expects to assign the following ratings and Rating Outlooks to the asset-backed notes issued by Hyundai Auto Lease Securitization Trust 2015-A:

--Class A-1 'F1+sf';
--Class A-2 'AAAsf'; Outlook Stable;
--Class A-3 'AAAsf'; Outlook Stable;
--Class A-4 'AAAsf'; Outlook Stable;
--Class B 'AAsf'; Outlook Stable.

KEY RATING DRIVERS

Stable Collateral Quality: The pool collateral is consistent with that of recently issued HALST transactions, with a WA FICO score of 742 and seasoning of nine months. While there is a decrease in longer-term leases, the securitized residual value (RV) has decreased to 63.26% of the securitization value (SV), and the pool exhibits a diversified mix of vehicle models.

Adequate CE Structure: Initial hard credit enhancement (CE) will be 16.95% and 13.50% for the class A and B notes, respectively, growing to 18.95% and 15.50% of the initial securitization value, consistent with past transactions. Initial excess spread is expected to be 3.62%. Loss coverage is adequate to support Fitch's 'AAAsf' and 'AAsf' stress assumptions.

Moderating Loss Performance: Credit and residual losses on HCA's portfolio have begun to increase from low levels seen in 2010 and 2011, but remain well below peaks used to derive the base case. The increases resulted from rapid origination growth and a stabilizing wholesale used vehicle market. Fitch's credit loss proxy is 1.15% of the SV and 13.30% of the RV.

Stabilizing Wholesale Values: The U.S. wholesale vehicle market has remained strong in recent years. However, increasing off-lease vehicle supply and pressure from increased production levels is expected to lead to decreased residual realizations. Fitch has accounted for this in its RV loss analysis.

Experienced Origination/Underwriting/Servicing: Fitch believes HCA to be a capable originator, underwriter, and servicer, as evidenced by historical portfolio delinquency and loss experience, and securitization performance.
Legal Structure Integrity: The legal structure of the transaction should provide that a bankruptcy of HCA would not impair the timeliness of payments on the securities.

RATING SENSITIVITIES

Unanticipated decreases in the value of returned vehicles and/or increases in the frequency of defaults and loss severity on defaulted receivables could produce loss levels higher than the base case. This would likely result in declines of CE and loss coverage levels available to the notes. Thus, Fitch conducts sensitivity analyses by increasing the transaction's initial base case RV and credit loss assumptions and examining the rating implications on all classes of issued notes. The increases to the base case losses are applied such that they represent moderate (1.5x) and severe (2.5x) stresses, and are intended to provide an indication of the rating sensitivity of notes to unexpected deterioration of a trust's performance.

The presale report is available at 'www.fitchratings.com' or by clicking on the above link.