Hyundai Auto Receivables Trust 2025-D notes upgraded by Fitch as credit performance holds

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Hyundai notes upgraded by Fitch

Highlights

Fitch upgraded Hyundai Auto Receivables Trust 2025-D class C notes’ Outlook to Positive and affirmed five others, citing robust collateral performance and rising credit enhancement.
As of the October 2026 distribution, 61-plus day delinquencies were 0.27% and cumulative net losses 0.37%, both well below Fitch's initial 1.65% rating case.
Hard credit enhancement increased to 11.70% for class A notes, 9.08% for class B, and 4.72% for class C, supporting stable and upgradeable ratings.

Rating action backed by loss and enhancement trends

As reported by Fitch Ratings, the Hyundai Auto Receivables Trust 2025-D transaction now shows enough credit support and loss performance to justify an upgrade for one outstanding class while maintaining ratings on five others.

The rating agency says the collateral pool continues to perform within its initial expectations, while hard credit enhancement has been building across all note classes since the deal closed. Fitch says the Stable Outlooks on the other classes reflect its view that the notes retain sufficient protection against potential deterioration in portfolio credit quality under stress scenarios, with loss coverage expected to keep increasing as the transaction amortizes.

For the class C notes, the Outlook is revised to Positive from Stable. Fitch says that change reflects the potential for an upgrade over the next one to two years.

October 2026 metrics point to resilient asset quality

As of the October 2026 distribution date, 61-plus day delinquencies stand at 0.27% of the remaining collateral balance, while cumulative net losses are 0.37%, below Fitch's initial rating case of 1.65%. Hard credit enhancement has risen since closing to 11.70% for class A notes, 9.08% for class B notes and 4.72% for class C notes.

Fitch says its lifetime cumulative net loss proxy incorporates the transaction's remaining pool factor, pool composition, current and future macroeconomic conditions, and wholesale vehicle values that affect recovery rates and ultimate losses. The agency maintains the rating case proxy at 1.65%, and says cash flow modeling under that assumption supports multiples consistent with or above 5.00x for 'AAAsf' and 3.33x for 'A+sf'.

Its base case loss expectation, which excludes a margin of safety, remains at 1.30% for 2025-D and is based on Fitch's September 2026 Global Economic Outlook report and projected forecasts.

In earlier coverage, we examined Hainan Rubber securities that Fitch rated BBB- due to subordination and coupon-deferral features.

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