GM Financial Consumer Automobile Receivables Trust 2019-2 Notes Assigned Preliminary Ratings

  • GM Financial Consumer Automobile Receivables Trust 2019-2's issuance is an ABS transaction backed by prime auto loan receivables.
  • We assigned our preliminary ratings to the class A-1, A-2A/A-2B, A-3, A-4, B, C, and D notes.
  • The preliminary ratings reflect our view of the transaction's credit support, collateral characteristics, and payment and legal structures, among other factors.
NEW YORK (S&P Global Ratings) April 3, 2019--S&P Global Ratings today assigned 
its preliminary ratings to GM Financial Consumer Automobile Receivables Trust 
2019-2's automobile receivables-backed notes (see list).

The note issuance is an asset-backed securities transaction backed by prime 
auto loan receivables.

The preliminary ratings are based on information as of April 3, 2019. 
Subsequent information may result in the assignment of final ratings that 
differ from the preliminary ratings.

The preliminary ratings reflect: 
  • The availability of approximately 8.8%, 7.4%, 6.3%, and 5.3% credit support for the class A-1, A-2, A-3, A-4 (collectively, class A), B, C, and D notes, respectively (based on stressed cash flow scenarios, including excess spread). These credit support levels provide coverage of more than 5.00x, 4.50x, 4.00x, and 3.67x of our 1.00%-1.20% expected cumulative net loss range for the class A, B, C, and D notes, respectively, and are commensurate with the assigned preliminary 'A-1+ (sf)' and 'AAA (sf)', 'AA+ (sf)', 'AA (sf)', and 'AA- (sf)' ratings.
  • The timely interest and full principal payments made under the stressed cash flow modeling scenarios appropriate for the assigned preliminary ratings. In our modeling approach, we used a bifurcated pool method, in which the subvened loans prepay and default at lower rates than the nonsubvened loans. (For cash flow purposes, the subvened/nonsubvened cut-off annual percentage rate [APR] is 4.0%.)
  • Our expectation that under a moderate ('BBB') stress scenario (2.0x our expected loss level), all else being equal, our preliminary 'AAA (sf)', 'AA+ (sf)', and 'AA (sf)' ratings on the class A, B, and C notes, respectively, are not likely to be lowered during the transaction's life, and our preliminary 'AA- (sf)' rating on the class D notes is likely to remain within one rating category while it is outstanding. These potential rating movements are within the tolerances outlined in our credit stability criteria (see "Methodology: Credit Stability Criteria," published May 3, 2010).
  • The transaction's credit enhancement in the form of subordinated notes, a nonamortizing reserve account, overcollateralization that builds to a target level, a yield supplement overcollateralization amount, and excess spread.
  • The collateral characteristics of the securitized pool.
  • Our view of the transaction's payment and legal structures.
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