OREANDA-NEWS. Fitch Ratings has affirmed Hyundai Capital Auto Funding IX Limited (Hyundai IX). The transaction is a securitisation of auto loans in South Korea originated by Hyundai Capital Services Inc. (HCS; BBB+/Stable/F2).

The rating actions are as listed below:

USD1.52m Class A1 notes due July 2017 affirmed at 'AAAsf'; Outlook Stable
USD1.52m Class A2 notes due July 2017 affirmed at 'AAAsf'; Outlook Stable

KEY RATING DRIVERS
The affirmation reflects significant credit enhancement (CE) build up in the transactions (87.8%) and the deleveraging of the notes as the transaction is in its controlled amortisation period. As of the payment date in November 2015, the class A1 and A2 notes of Hyundai IX have amortised to 0.76% of their original balance and Fitch expects them to be paid in full at the last payment date in January 2016.

The three-month average delinquency and default rates were reported at 0.06% and 0.04% respectively at 31 October 2015 for Hyundai IX. The delinquency and default rates performance for both transactions were significantly below the levels that may trigger early amortisation of 1.50% (delinquency) and 1.30% (default).

RATING SENSITIVITIES
Fitch evaluated the current cumulative gross defaults on the respective transaction and compared them to the base case default rates assumed at closing.

The current cumulative default rate of 0.52% is far below the 2.4% base case default rate assumed at closing. All else being equal, the base case default rate may have to rise by 7.1x before a downgrade would be considered.

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

DATA ADEQUACY
Fitch conducted a file review of 20 sample loan files on 29 October 2015 focusing on the underwriting procedures conducted by HCS at the time of underwriting. Fitch has checked the consistency and plausibility of the information and no material discrepancies were noted that would impact Fitch's rating analysis.

Initial Key Rating Drivers and Rating Sensitivities are described further in the New Issue report dated 25 August 2011.