Fitch: China Auto Loans Performing as Expected

Fitch Ratings says in a new report that the cumulative defaults levels of Chinese auto loan ABS transactions remain very low at between 0.07% and 0.5%, based on trustee reports for the collection period in January 2015 and are performing within expectations.

Fitch Ratings notes that while all programmes are performing within expectations, there is substantial divergence in performance can be observed between different Chinese auto ABS transactions.

Fitch believes a growth slowdown in the Chinese economy, which hastened in 2H14 with GDP growth ending the year at 7.4% against the above-9% average of 1989 to 2014, dulled the performance of the 2014 transactions. Fitch does not expect the weaker performance of recent transactions to affect current ratings.

The report can be found at www.fitchratings.com or by clicking the link above.