Fitch Affirms 4 Classes of Ally Auto Receivables Trust 2014-SN2
KEY RATING DRIVERS
The affirmation of the notes reflects the increase in credit enhancement since closing and strong collateral performance. Credit losses have been well within Fitch's expectations, and residual performance has been producing cumulative gains.
Fitch will continue to monitor economic conditions and their impact and the trust level performance variables and update the ratings accordingly.
RATING SENSITIVITIES
Unanticipated increases in the frequency of defaults or deterioration in vehicle values could produce loss levels higher than the current expectations and impact available loss coverage. Lower loss coverage could impact ratings and Rating Outlooks, depending on the extent of the decline in coverage.
To date, the transaction has exhibited strong credit and residual performance, well within Fitch's initial expectations with rising loss coverage. Due to the growing credit enhancement levels and increased loss coverage afforded to the notes, a substantial deterioration in used vehicle values would have to occur to have a negative impact on the updated ratings.
Fitch's stress and rating sensitivity analyses are discussed in the presale report titled 'Ally Auto Receivables Trust 2014-SN2 (US ABS)', dated Oct. 10, 2014 and available on Fitch's web site.
DUE DILIGENCE USAGE
No third party due diligence was provided or reviewed in relation to this rating action.
Fitch's analysis of the Representations and Warranties (R&W) of Ally Auto Receivables Trust 2014-SN2 can be found in 'Ally Auto Receivables Trust 2014-SN2 - Appendix'. These R&W are compared to those of typical R&W for the asset class as detailed in the special report 'Representations, Warranties, and Enforcement Mechanisms in Global Structured Finance Transactions' dated June 12, 2015.
Fitch has affirmed the following ratings for Ally Auto Receivables Trust 2014-SN2:
--Class A-2a at 'AAAsf'; Outlook Stable;
--Class A-2b at 'AAAsf'; Outlook Stable;
--Class A-3 at 'AAAsf'; Outlook Stable;
--Class A-4 at 'AAAsf'; Outlook Stable.
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