Fitch Ratings has affirmed two classes of asset-backed floating-rate notes from Plenti Auto ABS Trust 2022-1.

The transaction is backed by a pool of first-ranking Australian automotive loan receivables originated by Plenti Finance Pty Limited, a subsidiary of Plenti Group Limited (Plenti). The notes were issued by Perpetual Corporate Trust Limited in its capacity as trustee.

RATING ACTIONS

Entity / Debt

Rating

Prior

Plenti Auto ABS Trust 2022-1

A AU3FN0069100

LT

AAAsf

Affirmed

AAAsf

A-X AU3FN0069118

LT

AAAsf

Affirmed

AAAsf

Page

of 1

VIEW ADDITIONAL RATING DETAILS

KEY RATING DRIVERS

Stable Asset Performance: Obligor default is a key assumption in our quantitative analysis. The performance of the underlying assets has been better than Fitch's base-case net loss expectations, with 30+ and 60+ day arrears as of end-March 2023 at 1.1% and 0.4%, respectively, tracking below Fitch's 4Q22 Australian Dinkum ABS Index arrears of 1.14% and 0.58%. Plenti Auto ABS Trust 2022-1 closed in June 2022, resulting in limited reporting, but our performance expectations are unchanged from the transaction's closing.

The base case assumptions set at closing are detailed below:

Gross-loss expectations are 2.5%, 3.0%, 5.5% for tier 1, 2 and 3, respectively, and 5.0% for commercial loans. The 'AAAsf' default multiples are 6.00x, 5.50x, 5.25x and 5.50x. The recovery base case is 30.0%, with a 'AAAsf' recovery haircut of 50.0% across all sub-categories. The weighted-average base-case default assumption is 2.9% and the 'AAAsf' default multiple 5.8x.

Portfolio performance is supported by Australia's continued economic growth and tight labour market, despite increasing interest rates. GDP growth during 2022 was 2.7% and unemployment was 3.5% in March 2023. We expect GDP growth to slow to 1.5% in 2023, with unemployment reaching 4.2%, reflecting high inflation combined with a slowdown in consumer spending.

No Updated Cash Flow Modelling: Cash-flow analysis was not performed because the rated notes are rated at the highest possible level, credit enhancement has increased and all other variables are in line with our expectations.

Low Operational and Servicing Risk: All receivables were originated by Plenti Finance, which demonstrates adequate capability as originator, underwriter and servicer. Plenti is not rated by Fitch. Servicer disruption risk is mitigated by back-up servicing arrangements. The nominated back-up servicer is Perpetual Corporate Trust Limited. Fitch undertook an operational and file review and found that the operations of the originator and servicer were comparable with those of other auto lenders.

The key rating drivers listed in the applicable sector criteria, but not mentioned above, are not material to this rating action.

RATING SENSITIVITIES

Factors that could, individually or collectively, lead to negative rating action/downgrade:

Transaction performance may be affected by changes in market conditions and the economic environment. Weakening asset performance is strongly correlated with increasing levels of delinquencies and defaults that could reduce credit enhancement available to the notes.

Downgrade Sensitivities

Unanticipated increases in the frequency of defaults could produce loss levels higher than Fitch's base case and are likely to result in a decline in credit enhancement and remaining loss-coverage levels available to the notes. Decreased credit enhancement may make certain note ratings susceptible to negative rating action, depending on the extent of coverage decline. Hence, Fitch conducts sensitivity analysis by stressing a transaction's initial base-case assumptions. Fitch stresses the recovery rate to isolate the effect of a change in recovery proceeds at the borrower level.

Fitch's previous rating sensitivities for the transaction were discussed in Fitch Assigns Final Ratings to Plenti Auto ABS Trust 2022-1, dated 16 June 2022.

Factors that could, individually or collectively, lead to positive rating action/upgrade:

The rated notes are at 'AAAsf', which is the highest level on Fitch's scale. The ratings cannot be upgraded. Therefore, upgrade sensitivities are not relevant.

Best/Worst Case Rating Scenario

International scale credit ratings of Structured Finance transactions have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of seven notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of seven notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAAsf' to 'Dsf'. Best- and worst-case scenario credit ratings are based on historical performance. For more information about the methodology used to determine sector-specific best- and worst-case scenario credit ratings, visit https://www.fitchratings.com/site/re/10111579.

USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10

Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action.

DATA ADEQUACY

Fitch has checked the consistency and plausibility of the information it has received about the performance of the asset pool and the transaction. Fitch has not reviewed the results of any third-party assessment of the asset portfolio information as part of its ongoing monitoring.

Prior to the transaction closing, Fitch reviewed the results of a third-party assessment conducted on the asset portfolio information, and concluded that there were no findings that affected the rating analysis.

As part of its ongoing monitoring, Fitch reviewed a small targeted sample of the originator's origination files and found the information contained in the reviewed files to be adequately consistent with the originator's policies and practices and the other information provided to the agency about the asset portfolio.

Overall, and together with any assumptions referred to above, Fitch's assessment of the information relied upon for the agency's rating analysis, according to its applicable rating methodologies, indicates that it is adequately reliable.

REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING

The principal sources of information used in the analysis are described in the Applicable Criteria.

The issuer has informed Fitch that not all relevant underlying information used in the analysis of the rated notes is public.

ESG Considerations

Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. For more information on Fitch's ESG Relevance Scores, visit www.fitchratings.com/esg

Additional information is available on www.fitchratings.com

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