As a result of its annual review of the trust, Fitch Ratings affirms the following outstanding series issued from Ford Credit Floorplan Master Owner Trust A (FCFMOTA):
2013-4
--Class A at 'AAAsf'; Outlook Stable;
--Class B at 'AAsf'; Outlook Stable;
--Class C at 'Asf'; Outlook Stable;
--Class D at 'BBBsf'; Outlook Stable.
2013-5
--Class A-1 at 'AAAsf'; Outlook Stable;
--Class A-2 at 'AAAsf'; Outlook Stable;
--Class B at 'AAsf'; Outlook Stable;
--Class C at 'Asf'; Outlook Stable;
--Class D at 'BBBsf'; Outlook Stable.
2015-1
--Class A-1 at 'AAAsf'; Outlook Stable;
--Class A-2 at 'AAAsf'; Outlook Stable;
--Class B at 'AAsf'; Outlook Stable.
Fitch does not rate the Class C and D notes.
2015-2
--Class A-1 at 'AAAsf'; Outlook Stable;
--Class A-2 at 'AAAsf'; Outlook Stable;
--Class B at 'AAsf'; Outlook Stable.
Fitch does not rate the Class C and D notes.
2015-3
--Class A at 'AAAsf'; Outlook Stable.
KEY RATING DRIVERS
Quality of Wholesale Receivables: The trust receivables in this series have a high percentage of financing lines backing new vehicles at approximately 92%, are geographically diverse and have strong collateral aging with only 4.3% of the trust inventory aged past 270 days as of Sept. 30, 2015.
Asset Concentrations: Dealers are subject to concentration limits, mitigating the risk of individual dealer defaults and losses. Furthermore, the exposure to individual vehicle type, manufacturer or segment is mitigated with concentration limits in place.
Strength of Dealer Network: Based on dealer financial metrics and Ford Credit's internal dealer risk ratings (categorized into four distinct groups), the financial health of Ford's dealer network is currently strong, with the majority of dealers profitable in 2015.
Strong Trust Performance: FCFMOT continues to experience positive trends in overall performance, including elevated monthly payment rates (MPRs), adequate asset yields, low agings and delinquencies, minimal dealer defaults and no trust losses.
Sufficient Credit Enhancement: The outstanding notes benefit from enhancement in the form of subordination, a subordinated amount, an incremental subordination amount (if necessary) and a cash reserve. Structural features, including early amortization triggers, mitigate risks stemming from dealer/manufacturer defaults/bankruptcies.
Consistent Origination and Servicing: FMCC demonstrates adequate abilities as an originator, underwriter, and servicer, as evidenced by the historical delinquency and loss performance of FCFMOTA.
Current Economic Conditions: The slow U.S. economic recovery and volatility therein could affect the performance of this series. This is mitigated by the conservative analysis, stress assumptions applied and resulting loss coverage, and stable performance to date of FCFMOTA.
Legal Analysis: The legal structure of the transaction provides that a bankruptcy of FMCC 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 the 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.
To date, trust performance metrics are stable. A material deterioration in performance metrics would have to occur in performance to have a potential negative impact on ratings.
DUE DILIGENCE USAGE
No third-party due diligence was provided or reviewed in relation to this rating action.
Additional information is available at www.fitchratings.com.
Applicable Criteria
Counterparty Criteria for Structured Finance and Covered Bonds (pub. 14 May 2014)
https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=744158
Criteria for Servicing Continuity Risk in Structured Finance (pub. 17 Dec 2015)
https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=875586
Global Rating Criteria for Dealer Floorplan ABS (pub. 06 Jan 2015)
https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=833468
Global Structured Finance Rating Criteria (pub. 06 Jul 2015)
https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=867952
Related Research
Ford Credit Floorplan Master Note Trust A, Series 2013-5 -- Appendix
https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=718004
Ford Credit Floorplan Master Note Trust A, Series 2015-1 -- Appendix
https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=861372
Ford Credit Floorplan Master Note Trust A, Series 2015-2 - Appendix
https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=861411
Ford Credit Floorplan Master Note Trust A, Series 2015-3 -- Appendix
https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=866877
Ford Credit Floorplan Master Owner Trust A, Series 2013-4 -- Appendix
https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=710498
Additional Disclosures
Dodd-Frank Rating Information Disclosure Form
https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=998430
Solicitation Status
https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=998430
Endorsement Policy
https://www.fitchratings.com/jsp/creditdesk/PolicyRegulation.faces?context=2&detail=31
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