Moody’s expects automatic loan delinquencies to increase over the next three to six months



Moody’s Investors Service-rated asset-backed securities (ABS) recovery rates remained stable in the quarter ended March 2021

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Moody’s | Automatic loan

The recovery rates for asset-backed securities (ABS) of automatic loans rated by Moody’s Investors Service remained stable in the quarter ended March 2021, compared to the previous quarter.

They were similar to levels that prevailed before the moratoriums on coronavirus-related payments. Default rates in the quarter ended March 2021 were also similar to the previous quarter.

It was pointed out that the noted auto loan ABS did not use cash collateral to repay investors during the March 2021 quarter, including agreements with interest and principal payment structures on time. timely.


Still, Moody’s expects auto loan defaults to rise and collection rates to decline over the next three to six months.

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First published: Sun June 20, 2021. 8:57 PM IST


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