Moody's rates World Omni Master Owner Trust

The Pak Banker - - COMPANIES/BOSS -

Global rat­ing agency Moody's has as­signed a de­fin­i­tive rat­ing of Aaa (sf) to the se­nior notes is­sued by World Omni Master Owner Trust Se­ries 2013-1 (WOMOT 2013-1). Moody's said the rat­ings are based on an as­sess­ment of the qual­ity of the un­der­ly­ing auto dealer floor­plan re­ceiv­ables, the le­gal struc­ture and struc­tural pro­vi­sions, the man­u­fac­turer which the trans­ac­tion is pri­mar­ily ex­posed to (Toy­ota), and the ex­pe­ri­ence of World Omni Fi­nan­cial Corp. as ser­vicer.

The qual­ity of the floor­plan re­ceiv­ables was con­sid­ered based upon a num­ber of char­ac­ter­is­tics. A pri­mary con­sid­er­a­tion is the strength of the man­u­fac­turer and the ve­hi­cles that the deal­er­ships and the re­ceiv­ables have ex­po­sure. Moody's also con­sid­ered the size of the deal­er­ship base, the dealer credit rat­ing distri­bu­tion, the age distri­bu­tion of the re­ceiv­ables, and the over­all trust monthly pay­ment rate. Ve­hi­cle val­ues un­der stressed sce­nar­ios were also a con­sid­er­a­tion in our anal­y­sis. Our dealer de­fault sim­u­la­tion anal­y­sis in­cor­po­rated a stressed av­er­age dealer de­fault rate of 33%. Our pri­mary as­sump­tions for re­cov­ery rates of re­pos­sessed cars from de­faulted deal­ers was 65% for new cars and 60% for used cars. Moody's Aaa Level for WOMOT 2013-1 is 15%. Moody's V Scores pro­vide a rel­a­tive as­sess­ment of the qual­ity of avail­able credit in­for­ma­tion and the po­ten­tial vari­abil­ity around the var­i­ous in­puts to a rat­ing de­ter­mi­na­tion. The V Score ranks trans­ac­tions by the po­ten­tial for sig­nif­i­cant rat­ing changes ow­ing to un­cer­tainty around the as­sump­tions due to data qual­ity, his­tor­i­cal per­for­mance, the level of dis­clo­sure, trans­ac­tion com­plex­ity, the mod­el­ing and the trans­ac­tion gov­er­nance that un­der­lie the rat­ings. V Scores ap­ply to the en­tire trans­ac­tion (rather than in­di­vid­ual tranches). If the as­sumed dealer rat­ing used in de­ter­min­ing the ini­tial rat­ing were changed from B3 to Caa2, and the as­sumed re­cov­ery rates were re­duced by 10% and 20%, the ini­tial model-in­di­cated rat­ing for the Class A notes might change from Aaa to Aa2 and A1, re­spec­tively.

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