Moody’s Investors Service said in a report today that the credit quality of auto loan securitizations will remain stable in 2014 despite the continued weakening in underlying credit trends. The ratings agency also said that auto loan securitization new issuance volume will remain strong, but flat in 2014.

"ABS collateral pools are going to reflect the persistent weakening of auto lending standards, as lenders respond to both macroeconomic and competitive changes," says Jeff Hibbs, a Moody's assistant vice president - analyst and author of the report. "Nevertheless, we are maintaining our stable outlook for the sector, because rational lending, healthy used car prices and strong 2014 new vehicle sales will support the steady performance of the collateral backing auto loan, lease and floorplan asset-backed securities in 2014."

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