Moody's rates World Omni Master Owner Trust

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.