Fitch to Rate Ally Master Owner Trust, Series 2015-3; Issues Presale

NEW YORK--(BUSINESS WIRE)-- Fitch Ratings expects to assign the following ratings and Rating Outlooks to Ally Master Owner Trust, Series 2015-3 as follows:

--$500,000,000 Classes A-1 & A-2 'AAAsf'; Outlook Stable.

Key Rating Drivers

Quality of Wholesale Receivables: The trust receivables backing this series have a high percentage of floorplan loans backing new vehicles (89.5%) and strong aging distribution, with only 4.8% of inventory aged past 270 days. The receivables are geographically diverse.

Adequate Diversification: The top 20 dealers in the trust represent 14.0% of the receivables balance as of May 11, 2015. Dealers are subject to concentration limits, mitigating the risks associated with individual dealer defaults and losses. Concentration limits are also in place to limit exposure to individual vehicle types, manufacturers and segments.

Strength of Dealer Network: Based on a review of dealer financial metrics, the financial health of Ally's dealer network in 2015 is stable, with the majority of dealers profitable at income levels historically high through the first quarter. The falling U.S. unemployment rate and other positive domestic macroeconomic indicators have driven auto sales historically higher over the past year.

Stable Trust Performance: AMOT is experiencing consistent performance trends, including stable MPRs, low agings and minimal dealer defaults. However, due to increased competition in the floorplan lending market, yields have decreased each year since 2011, averaging 4.03% in 2014. Thus far in 2015, yields have further compressed, averaging 3.83% through April.

Sufficient Credit Enhancement: Initial credit enhancement (CE) for the class A notes is 26.5% (25.5% subordination and 1.0% reserve account, both of initial note balance), consistent with series issued in 2014. Structural features such as early amortization triggers mitigate risks of dealer/manufacturer defaults/bankruptcies.

Consistent Origination and Servicing: Ally demonstrates adequate abilities as originator, underwriter and servicer, as evidenced by loss performance and limited exposure to dealer defaults.

Legal Analysis: The legal structure of the transaction provides that a bankruptcy of Ally would not impair the timeliness of payments on the securities.

RATING SENSITIVITIES

To conduct rating sensitivity for the issued notes, under a category B Dealer Floorplan platform, Fitch assumes portfolio default levels at 10%, 25%, and 40%, and under two recovery-level scenarios of 50% and 30%. Fitch modeled these series with the assumption that the above defaults have occurred and recoveries stressed accordingly, reflecting asset performance in a stressed environment. Remaining expected loss levels were compared with the stressed loss assumption grid commensurate with various rating levels.

Fitch's analysis of the Representation and Warranties (R&W) of these transactions can be found in 'Ally Master Owner Trust, Series 2015-3 -- Appendix'. These R&W are compared to those of typical R&W for the asset class as detailed in Fitch's March 26, 2015 special report, 'Representations, Warranties, and Enforcement Mechanisms in the Global Structured Finance Transactions'.

The presale report is available to all investors at 'www.fitchratings.com' or by clicking on the above link.

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research:

--'Global Rating Criteria for Dealer Floorplan ABS' (January 6, 2015);

--'Global Structured Finance Rating Criteria' (March 31, 2015);

--'Representations, Warranties and Enforcement Mechanisms in Global Structured Finance Transaction' (March 26, 2015)

--'Ally Master Owner Trust, Series 2015-3 -- Appendix' (May 22, 2015);

--'Ally Master Owner Trust, Series 2015-3' (May 22, 2015).

Applicable Criteria and Related Research: Ally Master Owner Trust, Series 2015-3 (US ABS)

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=866302

Representations, Warranties and Enforcement Mechanisms in Global Structured Finance Transactions

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=863817

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=864268

Global Rating Criteria for Dealer Floorplan ABS

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=833468

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=985217

ALL 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 PUBLIC WEBSITE '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.

View source version on businesswire.com: http://www.businesswire.com/news/home/20150522005485/en/

Fitch Ratings, Inc.
Primary Analyst
Timothy McNally
Associate Director
+1-212-908-0870
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Secondary Analyst
Hylton Heard
Senior Director
+1-212-908-0214
or
Committee Chairperson
Kevin Corrigan
Senior Director
+1-212-908-0156
or
Media Relations
Sandro Scenga, +1-212-908-0278
[email protected]

Source: Fitch Ratings

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