The three upgrades were to the class B notes of Fuyuan 2016-1 Retail Auto Mortgage Loan Securitization Trust, Fuyuan 2017-1 Retail Auto Mortgage Loan Securitization Trust and Fuyuan 2017-2 Retail Auto Mortgage Loan Securitization Trust. They are all Chinese auto loan ABS transactions originated by Ford Automotive Finance (China) Limited, a wholly owned subsidiary of Ford Motor Credit Company LLC (BBB/Stable/F2), and the upgrades reflect the build-up of credit enhancement, strong asset performance and a stable sector outlook. The positive rating actions resolved the Rating Watch Positive (RWP) on the ratings of the three tranches, which had been in place since 20 September 2017 following the update of Fitch's Structured Finance and Covered Bonds Country Risk Rating Criteria. The class A notes from the three Fuyuan transactions were affirmed as were three tranches from Shanghe 2016-1 Retail Auto Mortgage Loan Securitization Trust and Shanghe 2017-1 Retail Auto Mortgage Loan Securitization Trust.
Nine Indian auto loan ABS pass-through certificates from seven Platinum Trust transactions were affirmed at 'BBB-sf' in 4Q17.
Fitch also affirmed two tranches from Hyundai Capital Auto Funding XI Limited, a Korean auto loan ABS transaction originated by Hyundai Capital Services Inc. (BBB+/Stable/F2). The transaction was still in its revolving period at the time of review; it began amortising in December 2017. Strong underlying asset performance supported the affirmation of outstanding ratings at 'AAAsf'.
Most Fitch-rated SF transactions from China, India, Korea and Singapore have Stable Outlooks, based on the agency's expectations of asset performance and macroeconomic conditions. Two Chinese ABS tranches remain on RWP following the criteria change referred to above.
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