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


  • GM Financial Consumer Automobile Receivables Trust 2019-2's issuance is an ABS transaction backed by prime auto loan receivables.
  • We assigned our ratings to the class A-1, A-2A, A-3, A-4, B, C, and D notes.
  • The 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 17, 2019--S&P Global Ratings today 
assigned its 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 ratings reflect: 
  • The availability of approximately 8.8%, 7.4%, 6.3%, and 5.3% credit support for the class A-1, A-2A, 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 '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 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 '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 '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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