(The following statement was released by the rating agency)
Nov 30- Standard & Poor's Ratings Services recently updated the methodology and assumptions it uses to rate and monitor U.S. asset-backed securities (ABS) backed by auto leases. Standard & Poor's does not anticipate any rating changes as a result of the revised criteria.
Notable changes in the updated criteria include:
-- Further clarification regarding the criteria applied to analyzing base residual values in U.S. auto lease ABS securitizations, inclusive of an adjustment to a third-party forecaster's base residual value;
-- Introduction of a benchmark pool to assist in the analysis of securitized pool concentrations; and
-- Haircuts, or discounts to par, for securitized pools based on their concentrations relative to the newly established benchmark pool and the corporate credit rating of the applicable automobile manufacturer.
Standard & Poor's methodology for rating and monitoring auto lease ABS securitizations consists of a review of collateral characteristics, static pool and portfolio performance, third-party forecasts of residual values, historical auction data, current used vehicle market values, and transaction structures. The updated criteria address the risks associated with the:
-- Credit quality of the securitized assets;
-- Cash flow mechanics and payment structure;
-- Operational and administrative risk;
-- Counterparty risk; and
-- Legal and regulatory risk.
Standard & Poor's will host a teleconference at 11 a.m. (EST) on Dec. 1, 2011, to discuss the revised auto lease ABS criteria. Details are as follows:
Live Dial-In Information:
-- US/Canada Toll Free: 1-888-810-6803
-- US/Canada/All Others Toll: 1-312-470-7126
-- Conference ID#: 2150163
-- Passcode: SANDP
-- US/Canada Toll Free: 1-800-568-4850
-- US/Canada/All Others Toll: 1-203-369-3813
-- Replays will expire on Thursday, Dec. 8, 2011
The complete criteria article, "Revised General Methodology And Assumptions For Rating U.S. ABS Auto Lease Securitizations," was published Nov. 29, 2011.