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TEXT-S&P assigns Hyundai Auto Receivables 2013-A notes preliminary rating
January 22, 2013 / 4:22 PM / 5 years ago

TEXT-S&P assigns Hyundai Auto Receivables 2013-A notes preliminary rating

OVERVIEW
     -- Hyundai Auto Receivables Trust 2013-A's issuance is an ABS 
securitization backed by prime auto loan receivables.
     -- We assigned our preliminary ratings to the class A, B, and C notes.
     -- The preliminary ratings reflect our view of the transaction's credit 
enhancement, the timely interest and principal payments made under the 
stressed cash flow modeling scenarios, and the collateral characteristics of 
the securitized pool of prime automobile loans, among other factors.
 
NEW YORK (Standard & Poor's) Jan. 22, 2013--Standard & Poor's Ratings Services 
today assigned its preliminary ratings to Hyundai Auto Receivables Trust 
2013-A's $1,313,580,000 asset-backed notes series 2013-A (see list).

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

The preliminary ratings are based on information as of Jan. 22, 2013. 
Subsequent information may result in the assignment of final ratings that 
differ from the preliminary ratings.

The preliminary ratings reflect our view of: 
     -- The availability of approximately 12.2% credit support at the 
preliminary 'AAA (sf)' rating level, 10.6% at the 'AA+ (sf)' level, and 7.4% 
at the 'A+ (sf)' level (based on stressed cash flow scenarios), including 
excess spread, which provides more than 5.0x, 4.5x, and 3.33x coverage of our 
1.40%-1.60% expected loss range for the notes.
     -- The ratings on the notes remaining within one category of the 'AAA 
(sf)', 'AA+ (sf)', and 'A+ (sf)' ratings under a moderate stress scenario of 
2.0x our expected net loss level. This is consistent with our credit stability 
criteria (for more information, see "Methodology: Credit Stability Criteria," 
published May 3, 2010).
     -- The credit enhancement in the form of subordination, 
overcollateralization, a reserve account, a yield supplement 
overcollateralization amount, and excess spread.
     -- The timely interest and principal payments made under the stressed 
cash flow modeling scenarios that we believe are consistent with the assigned 
preliminary ratings. 
     -- The collateral characteristics of the securitized pool of prime 
automobile loans.
     -- Hyundai Capital America's (formerly known as Hyundai Motor Finance 
Co.) extensive securitization performance history since 2001.
     -- The transaction's payment and legal structures.
 
STANDARD & POOR'S 17G-7 DISCLOSURE REPORT
 
SEC Rule 17g-7 requires an NRSRO, for any report accompanying a credit rating 
relating to an asset-backed security as defined in the Rule, to include a 
description of the representations, warranties and enforcement mechanisms 
available to investors and a description of how they differ from the 
representations, warranties and enforcement mechanisms in issuances of similar 
securities.

The Standard & Poor's 17g-7 Disclosure Report included in this credit rating 
report is available at "RELATED CRITERIA AND RESEARCH

Related Criteria
     -- Principles Of Credit Ratings, Feb. 16, 2011
     -- General Methodology And Assumptions For Rating U.S. Auto Loan 
Securitizations, Jan. 11, 2011
     -- Methodology: Credit Stability Criteria, May 3, 2010
     -- Standard & Poor's Revises Criteria Methodology For Servicer Risk 
Assessment, May 28, 2009
 
Related Research
     -- Presale: Hyundai Auto Receivables Trust 2013-A, Jan. 22, 2013
     -- Ratings On Hyundai Motor and Kia Motors Unaffected By Overstated 
Fuel-Economy Labels In The U.S, Nov. 7, 2012
     -- Hyundai Motor Co., Oct. 22, 2012
     -- Hyundai Capital America 'BBB+' Rating Affirmed, Outlook Remains 
Stable; Proposed Senior Unsecured Notes Rated 'BBB+', Sept. 24, 2012
     -- Review of Six Hyundai Auto Receivables Trust Transactions Yields Five 
Upgrades, 13 Affirmations, July 6, 2012
     -- Global Structured Finance Scenario And Sensitivity Analysis: The 
Effects Of The Top Five Macroeconomic Factors, Nov. 4, 2011
     -- Two Hyundai Auto Receivables Trust Series 2006-B Ratings Raised; Nine 
Ratings Affirmed On Four Series, Oct. 4, 2010
 
PRELIMINARY RATINGS ASSIGNED
Hyundai Auto Receivables Trust 2013-A
 
Class     Rating         Type          Interest         Amount
                                       rate        (mil. $)(i)
A-1       A-1+ (sf)      Senior        Fixed            305.00
A-2       AAA (sf)       Senior        Fixed            428.00
A-3       AAA (sf)       Senior        Fixed            374.00
A-4       AAA (sf)       Senior        Fixed            143.20
B         AA+ (sf)       Subordinate   Fixed             25.02
C         A+ (sf)        Subordinate   Fixed             38.56

(i)The size of these tranches will be determined on the pricing date.

0 : 0
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