TEXT-S&P revises U.S. ABS auto lease securitization criteria

Newswire

(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

Replay Information:

-- 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.

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