Fitch: Australian Auto ABS Performance Remains Strong in 4Q15

(The following statement was released by the rating agency)Link to Fitch Ratings' Report: Auto ABS Index – Australia: The Dinkum ABS Index - 4Q15https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=879077SYDNEY, March 30 (Fitch) Australian prime auto asset-backed securities (ABS) losses improved over 4Q15, with the annualised net-loss rate dropping 13bp quarter on quarter (qoq) to 0.39% in December 2015, as new transactions were added to the index, according to Fitch Rating's latest Dinkum ABS Index.Prime auto ABS issuance was at a record high of AUD6.8bn in 2015, 13.5% higher than the previous year. The fourth quarter experienced the highest quarterly issuance, with three auto ABS transactions issued, totalling AUD2.6bn. No transactions were redeemed. The outstanding collateral underlying the index increased by AUD0.9bn to AUD10.8bn.The 30+ and 60+ delinquencies increased 11bp and 17bp year-on-year in December 2015 to 1.10% and 0.54%. Arrears deteriorated due to Christmas and holiday spending. Borrowers may have struggled to adjust spending following lower real wage growth over 2015. Arrears were assisted by retail petrol and diesel fuel prices declines of 12.9% and 17% in the year to December 2015, which helped alleviate spending pressures.Recovery rates are trending downwards, as competitive new car sale prices put downwards pressure on used vehicle prices. Recovery rates on repossessed cars were 44.3% in December 2015. The current and historical Dinkum ABS Index data is available in Excel form through the full report entitled, 'Auto ABS Index - Australia: The Dinkum Index - 4Q15', available at www.fitchratings.com or by clicking the link above.Contacts:Katie BrookesAnalyst+612 8256 0364Fitch Australia Pty Ltd. Level 15, 77 King Street, Sydney, NSW 2000, Australia.James ZanesiDirector+612 8256 0306Natasha Vojvodic Senior Director, Head of Australian and New Zealand Structured Finance +612 8256 0350Media Relations: Leni Vu, Sydney, Tel: +61 2 8256 0304, Email: leni.vu@fitchratings.com.Additional information is available on www.fitchratings.comALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S FREE WEB SITE AT WWW.FITCHRATINGS.COM. PUBLISHED RATINGS, CRITERIA, AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE, AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE CODE OF CONDUCT SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE. Fitch Australia Pty Ltd holds an Australian financial services licence (AFS licence no. 337123) which authorises it to provide credit ratings to wholesale clients only. Credit ratings information published by Fitch is not intended to be used by persons who are retail clients within the meaning of the Corporations Act 2001.