DBRS Assigns Provisional Ratings to Ford Auto Securitization Trust Series 2009-R1 Class A-1, Class A-2 and Class A-3 Asset-Backed Notes

DBRS has today assigned the following provisional ratings to Ford Auto Securitization Trust (the Trust or FAST):

– AAA to the Asset-Backed Notes, Series 2009-R1, Class A-1 (the Class A-1 Notes)
– AAA to the Asset -Backed Notes, Series 2009-R1, Class A-2 (the Class A-2 Notes)
– AAA to the Asset -Backed Notes, Series 2009-R1, Class A-3 (the Class A-3 Notes)

On closing, the Trust will acquire a portfolio of retail car and light truck auto loans (the Portfolio of Loans) from Ford Credit Canada Limited (FCCL). The Class A-1 Notes, Class A-2 Notes and Class A-3 Notes (collectively, the Notes) are pass-through securities, with monthly repayment of interest and principal based on actual cash flows from the Portfolio of Loans. Principal on the Notes will be repaid sequentially, with the Class A-1 Notes being paid prior to repayment of any principal on the Class A-2 Notes and Class A-2 Notes being paid prior to repayment of any principal on the Class A-3 Notes. Each of the Notes is provisionally rated AAA based on full repayment of the Notes by their respective legal final maturity dates.

The provisional ratings incorporate the following considerations:

(1) The low and consistent historical annualized net credit loss levels in the FCCL portfolio of no greater than 0.42% over the past five years.

(2) The high level of credit enhancement supporting the Notes provided by the overcollateralization (5.0% of the initial Adjusted Pool Balance and buildings toward a minimum of 7.0% of the initial Adjusted Pool Balance), Reserve Account (1.0% of the Initial Pool Balance) and an initial annual interest spread of approximately 4.0%.

(3) The non-amortizing nature of the enhancement, which results in increasing levels of support as the Notes are repaid.

(4) The performance guarantee provided by FCCL’s parent, Ford Motor Credit Company LLC.

(5) The significant experience of FCCL in the origination and servicing of retail auto loans and securitization transactions backed by those assets.

Stress tests using assumptions, including replacement servicer fees and large increases in delinquency and credit losses, indicate that credit enhancement provides sufficient protection to the Notes to warrant the AAA ratings.

Notes:
The applicable methodology is Rating Canadian Auto Loan Securitization, which can be found on our website under Methodologies.

This is a Structured Finance rating.