OREANDA-NEWS. As part of its ongoing surveillance, Fitch Ratings affirms three and upgrades two classes from the Ford Credit Auto Owner Trust (FCAOT) 2014-C. A full list of rating actions follows at the end of this rating action commentary.

KEY RATING DRIVERS
The rating upgrades of the applicable classes in the transaction are a result of strong loss coverage under Fitch's assumptions and stresses in cash flow modeling. The affirmations on the remaining notes in the transactions reflect loss coverage levels consistent with current ratings. The transaction has continued to perform well within Fitch's cumulative net loss expectations to date.

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 the 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 expectations. To date, the transactions have exhibited strong performance with losses well 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.

Fitch's analysis of the Representation and Warranties (R&W) of the transaction can be found in the respective appendix listed below. This R&W is compared to those of typical R&W for the asset class as detailed in the special report 'Representations, Warranties, and Enforcement Mechanisms in the Global Structured Finance Transactions' dated March 26, 2015.

DUE DILIGENCE USAGE
No third-party due diligence was provided or reviewed in relation to this rating action.

Fitch has taken the following rating actions:

2014-C:
--Class A-2 affirmed at 'AAAsf'; Outlook Stable;
--Class A-3 affirmed at 'AAAsf'; Outlook Stable;
--Class A-4 affirmed at 'AAAsf'; Outlook Stable;
--Class B upgraded to 'AAAsf' from 'AA+sf'; Outlook Stable;
--Class C upgraded to 'AAsf' from 'A+sf'; Outlook revised to Positive from Stable.