Fitch to Rate World Omni Master Owner Trust, Series 2013-1; Presale Issued
Fitch Ratings expects to assign the following rating to World Omni Master Owner Trust, Series 2013-1:
--$350,000,000 class A 'AAAsf'; Outlook Stable.
Key Rating Drivers
Good Quality of Receivables: The series receivables are backed by more than 90% new vehicles, which are mainly Toyota vehicles, along with a small amount of other OEM new and used vehicles.
Asset Concentrations: Dealers and vehicle types are subject to concentration limits, mitigating the risk of individual dealer defaults and losses, and providing vehicle-type diversification.
Strong Dealer Network: Based on a review of dealer financial metrics, including gross/net profits and absorption rates, the financial health of the participating dealer network is viewed as historically strong, with the majority of dealers profitable through year-end 2012.
Strong Trust Performance: WOMOT continued to experience positive trends in overall performance, including strong monthly payment rates (MPRs) and consistent asset yields, low agings and delinquencies, and virtually no dealer defaults and no trust losses to date.
Sufficient Credit Enhancement: Initial credit enhancement (CE) for the class A notes is 17.02% (of the initial pool balance), consisting of a 16.60% available subordinated amount (ASA) and 0.42% reserve account. Structural features include early amortization triggers, which mitigate risks stemming from dealer/manufacturer defaults/bankruptcies.
Consistent Origination and Servicing: World Omni Financial Corp. (WOFCO) has adequate abilities as an originator, underwriter, and servicer, as evidenced by the historical trust performance metrics and loss performance.
Current Economic Conditions: The slow and volatile U.S. economic recovery could impact the performance of this series. This is mitigated by the conservative analysis, stress assumptions applied and resulting loss coverage, and stable performance of the trust to date.
Legal Structure Integrity: The legal structure of the transaction provides that a bankruptcy of WOFCO would not impair the timeliness of payments on the securities.
The presale report is available to all investors on Fitch's website at 'www.fitchratings.com'. For more information about Fitch's comprehensive subscription service FitchResearch, which includes all presale reports, surveillance, and credit reports on more than 20 asset classes, contact product sales at +1-212-908-0800 or at 'firstname.lastname@example.org'.
Additional information is available at 'www.fitchratings.com'. The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has been compensated for the provision of the ratings.
Applicable Criteria and Related Research:
--'Global Rating Criteria for Dealer Floorplan ABS' (Jan. 22, 2013);
--'Global Structured Finance Rating Criteria' (June 6, 2012).
Applicable Criteria and Related Research: World Omni Master Owner Trust 2013-1
Global Structured Finance Rating Criteria
Global Rating Criteria for Dealer Floorplan ABS
Hylton Heard, +1-212-908-0214
1 State Street Plaza
New York, NY 10004
Juveria Mozaffar, +1-312-368-2335
Du Trieu, +1-312-368-2091
Sandro Scenga, +1-212-908-0278 (New York)