U.S. auto lenders will likely report further weakening in asset quality metrics this year, driven mainly by lower used car values, a loosening of underwriting terms and further seasoning of loan portfolios, according to Fitch. Credit losses and delinquency rates increased on a year-over-year basis for all major auto lenders in the first quarter, and we expect that trend to continue as asset quality metrics retreat from historically strong levels reported in 2012. For Fitch-rated issuers, average credit losses increased 16 bps year-over-year in 1Q'13, and delinquencies were 67 bps higher than the year-earlier quarter.
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