Easy credit, the high-octane fuel propelling U.S. auto sales to record heights, is beginning to show a downside as delinquencies on the securities backed by subprime auto loans have reached the highest level since 2009, Fitch Ratings reported today.
“Weaker performance in the subprime sector is being driven mainly by the weaker credit quality present in the 2013 through 2015 securitized pools, along with marginally lower used vehicle values,” wrote Hylton Heard, Fitch’s senior director.