|
|
 |
|
Viewing report
|
|
|
|
Auto ABS Navigates Rough Roads Oct 98
Standard & Poors, Oct 1998
Abstract
The liquidity crunch now affecting the auto sector and many other ABS sectors is likely to be a temporary detour, but there are more bumps and curves on the auto horizon. The largest potential hazard is consumer credit quality, particularly if the economic map leads to recession. Although credit deterioration in some sectors seems to have stabilized, an economic downturn could reverse that trend. Industry consolidation is another, uncharted, road. So far consolidation has ultimately benefited the industry, by leading to tighter underwriting standards, but it remains to be seen how much more industry reshuffling can occur. The liquidity roadblock should be short-lived, however, because it is due to a pervasive loss of investor confidence instead of worsening fundamentals. Standard...
Companies mentioned in this report are: Ford Motor Credit Co. LLC,BBVA USA Bancshares Inc.,First Horizon National Corp.,Toyota Motor Credit Corp.,Compass Bank,Money Store L.L.C. (The),Arcadia Financial Ltd.,General Motors Financial Co. Inc.
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research Type: Commentary
Criteria articles describe the thought process and methodology Standard & Poor's analysts use in determining ratings. These commentary pieces discuss both the quantitative (economic and financial) and qualitative (business analysis and caliber of management) aspects of the analysis, as well as legal issues.
|
|
|
|
