Fitch Ratings is working on a new methodology for assigning formal seller/servicer ratings to auto ABS issuers and should have the criteria ready sometime next year. Fitch Associate Director Lena Katsnelson confirmed the methodology was being finalized but could not specify when it would be available. Additionally, Fitch published a report outlining its auto ABS ratings criteria last week.
Katsnelson, co-author of the auto ABS criteria report, said the development of formal ratings comes as a result of the increase in auto whole loan sales. The criteria report was published as part of a general effort to make the ratings process more transparent.