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Fitch Affirms 5 Classes of Volkswagen Auto Loan Enhanced Trusts

January 17, 2014

NEW YORK --(BUSINESS WIRE)-- As part of its ongoing surveillance, Fitch Ratings affirms five classes of the Volkswagen Auto Loan Enhanced Trusts as detailed below: Volkswagen Auto Loan Enhanced Trust 2011-1: --Class A-3 at 'AAAsf'; Outlook Stable; --Class A-4 at 'AAAsf'; Outlook Stable. Volkswagen Auto Loan Enhanced Trust 2013-1: --Class A-2 at 'AAAsf'; Outlook Stable; --Class A-3 at 'AAAsf'; Outlook Stable; --Class A-4 at 'AAAsf'; Outlook Stable. KEY RATING DRIVERS: The ratings are based on available credit enhancement and loss performance. Each collateral pool continues to perform within Fitch's expectations. Under the credit enhancement structure, the securities are able to withstand stress scenarios consistent with the current ratings and make full payments to investors in accordance with the terms of the documents. The ratings reflect the quality of Volkswagen Credit Inc. retail auto loan originations, the strength of its servicing capabilities, and the sound financial and legal structure of the transaction. RATING SENSITIVITY: Unanticipated increases in the frequency of defaults and loss severity could produce loss levels higher than the current projected base case loss proxy and impact available loss coverage and multiples levels for the transaction. Lower loss coverage could impact ratings and Rating Outlooks, depending on the extent of the decline in coverage. In Fitch's initial review of the transaction, the notes were found to have limited sensitivity to a 1.5x and 2.5x increase of Fitch's base case loss expectation. To date, both transactions have exhibited strong performance with losses well within Fitch's initial expectations with rising loss coverage and multiple levels. This increased loss coverage has further reduced the sensitivity of assigned ratings to increased loss levels. Fitch's analysis of the Representation and Warranties (R&W) of this transaction can be found in 'Volkswagen Auto Loan Enhanced Trust 2013-1 - Appendix'. These R&W are compared to those of typical R&W for the asset class as detailed in the special report 'Representations, Warranties, and Enforcement Mechanisms in the Global Structured Finance Transactions' dated April 17, 2012 . Additional information is available at ' '. Applicable Criteria and related research: --'Rating Criteria for U.S. Auto Loan ABS' ( April 10, 2013 ); --'Global Structured Finance Rating Criteria' ( May 24, 2013 ); --'Volkswagen Auto Loan Enhanced Trust 2013-1 - Appendix', ( Feb. 19, 2013 ). Applicable Criteria and Related Research : Volkswagen Auto Loan Enhanced Trust 2013-1 -- Appendix Global Structured Finance Rating Criteria Rating Criteria for U.S. Auto Loan ABS Additional Disclosure Solicitation Status 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. Fitch Ratings Primary Analyst: John Alberici , +1-212-908-0370 Analyst Fitch Ratings, Inc. One State Street Plaza New York NY 10004 or Secondary Analyst: Bradley Sohl , +1-212-908-0792 Senior Director or Committee Chairperson: Du Trieu , +1-312-368-2097 Senior Director or Media Relations, New York Sandro Scenga , +1 212-908-0278 Source: Fitch Ratings

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