NEW YORK — Rising U.S. new and used auto sales have boosted dealership profits in 2012 and are strengthening already-solid performance of dealer floorplan ABS, according to Fitch Ratings in a new report.
Dealer floorplan asset performance has been solid this year, with most trust performance metrics at some of the strongest levels seen in the sector. Monthly payment rates (MPR) are elevated above historical levels, dealer inventory agings are very low, and dealer defaults are at record lows for most of the trusts.
Given the favorable conditions currently supporting U.S. auto dealership networks, Fitch’s outlook for both asset and ratings performance in 2012 is stable.
The report also discusses the health of U.S. auto dealerships in 2012, including sales levels, expenses, and profitability along with detailing other financial dealer metrics and overall industry health.
Fitch’s report is an annual review discussing trust features and structures, and current performance metrics, including MPRs, agings and delinquencies, dealer health, and loss levels.
Fitch currently rates 15 outstanding dealer floorplan trust series totaling $10.6 billion issued from the two auto-related dealer floorplan trusts and two non-auto/diversified product trusts, as listed below.
–Ford Credit Floorplan Master Owner Trust A (FCFMOT), sponsored and serviced by Ford Motor Credit Company (FMCC);
–Ally Master Owner Trust (AMOT), sponsored by Ally Bank (ally) and serviced by Ally Financial Inc. (Ally Financial);
–GE Dealer Floorplan Master Note Trust (GE DFMNT), sponsored by General Electric Commercial Distribution Finance (GE CDF) and serviced by General Electric Capital Corp. (GECC); and
–CNH Wholesale Master Note Trust (CNH WMNT), sponsored and serviced by CNH Capital America LLC (CNH Capital), a subsidiary of Fiat Industrial S.p.A.
Additional insight into the sector and performance thereof is available in the new report, ‘U.S. Dealer Floorplan ABS: Robust Dealers in 2012’ available at ‘www.fitchratings.com‘.
Additional information is available at ‘www.fitchratings.com‘