NEW YORK -

S&P Global Ratings spotted what it called “normal seasonal weakness” after analysts reviewed its latest data on collateral performance in the U.S. auto loan asset-backed securities (ABS) sector.

Analysts found that “weakness” appeared in November with recoveries declining and delinquencies increasing relative to October’s levels.

S&P Global Ratings also determined that year-over-year, prime performance softened with delinquencies and losses increasing, while subprime improved with by higher recoveries and lower losses.

According to the report shared with SubPrime Auto Finance News, U.S. prime auto loan losses remained stable at 0.67% in November compared to 0.68% in October, but they increased from 0.58% in November of last year.

Analysts explained that year-over-year rise of 10 basis points stemmed from a drop in recoveries to 53.52% from 56.56% recorded a year earlier.

Meanwhile, S&P Global Ratings noted that subprime losses decreased 47 basis points to 8.85% in November from 9.32% in October. The year-over-year drop came in at 48 basis points from November 2018 to land at 9.33%.

After netting out three deep subprime issuers, S&P Global Ratings mentioned that its modified subprime losses decreased by 83 basis points to 6.68% in November from 7.51% in October. The year-over-year improvement registered in at 40 basis points since the November 2018 reading was 7.08%.

Also of note in the subprime space, analysts noticed that subprime recoveries in November dropped to their lowest point since January, softening by 88 basis points to 38.71%

S&P Global Ratings went on to mention that the prime 60-day delinquency rate increased slightly to 0.45% in November from 0.43% in October 2019, and 0.42% in November 2018.

The firm added the subprime 60-day delinquency rate rose to 5.43% in November from 5.32% in October, but was generally stable compared to the reading of 5.46% registered in November 2018.

S&P Global Ratings’ complete report can be obtained here.