Fitch: Profitable Dealerships Enhancing US Dealer Floor Plan ABS

May 23, 2012

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NEW YORK — Fitch Ratings newest report released this week showed that rising U.S. new- and used-vehicle sales are not only boosting dealership profits so far this year, but they also are strengthening the "already solid" performance of dealer floor plan ABS.

Fitch analysts highlighted, "Dealer floor plan asset performance has been solid this year with most trust performance metrics at some of the strongest levels seen in the sector.

"Monthly payment rates are elevated above historical levels, dealer inventory agings are very low, and dealer defaults are at record lows for most of the trusts," they continued.

"Given the favorable conditions currently supporting U.S. auto dealership networks, Fitch's outlook for both asset and ratings performance in 2012 is stable," analysts shared.

Fitch currently rates 15 outstanding dealer floor plan trust series totaling $10.6 billion issued from the two auto-related dealer floor plan trusts and two non-auto/diversified product trusts, as listed below.

—Ford Credit Floor Plan Master Owner Trust A (FCFMOT) sponsored and serviced by Ford Motor Credit Co.

—Ally Master Owner Trust (AMOT) sponsored by Ally Bank and serviced by Ally Financial.

—GE Dealer Floorplan Master Note Trust (GE DFMNT), sponsored by General Electric Commercial Distribution Finance (GE CDF) and serviced by General Electric Capital Corp.

—CNH Wholesale Master Note Trust (CNH WMNT), sponsored and serviced by CNH Capital America LLC (CNH Capital), a subsidiary of Fiat Industrial S.p.A.

Fitch's latest subscriber report also discussed the health of U.S. dealerships, including sales levels, expenses and profitability along with detailing other financial dealer metrics and overall industry health.

The firm's report is an annual review discussing trust features and structures, and current performance metrics, including MPRs, agings and delinquencies, dealer health and loss levels.

Additional insight into the sector and performance is available in the new report, "U.S. Dealer Floorplan ABS: Robust Dealers in 2012" is available at www.fitchratings.com.