--Class A-3 at 'AAAsf'; Outlook Stable;
--Class A-4 at 'AAAsf'; Outlook Stable;
KEY RATING DRIVERS
The transaction has exceeded performance to date relative to Fitch's initial cumulative net loss expectation of 0.90%. The affirmations of the A-3 and A-4 notes reflect loss coverage levels consistent with current ratings. The stable outlooks on the notes reflect Fitch's view that the transaction will continue to perform well.
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 multiple levels. Lower loss coverage could impact ratings and 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, the transaction has exhibited strong performance with losses well within Fitch's initial expectation with rising loss coverage and multiple levels. As such, a material deterioration in performance would have to occur within the asset pool to have potential negative impact on the outstanding ratings.
Fitch's analysis of the Representation and Warranties (R&W) of 2012-3 can be found in Honda Auto Receivables 2012-3 Owner Trust Appendix'. The 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
Additional information is available at 'www.fitchratings.com'.
--'Rating Criteria for U.S. Auto Loan ABS'(
--'Global Structured Finance Rating Criteria' (
--'Honda Auto Receivables 2012-3 Owner Trust Appendix' (
Rating Criteria for U.S. Auto Loan ABS - Effective
Global Structured Finance Rating Criteria - Effective from
Honda Auto Receivables 2012-3
Source: Fitch Ratings
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