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Auto ABS Upgraded

Moody’s Investors Service has upgraded three tranches of automobile asset-backed securities issued by Capital One.

Moody’s Investors Service has upgraded three tranches of automobile asset-backed securities issued by Capital One. One prime tranche was raised from Aa1 to Aaa, while two subprime tranches rose from Aa2 to Aaa. Moody’s says the upgrades were the result of “lower lifetime cumulative net loss expectations and build-up in credit enhancement relative to remaining losses due to the non-declining nature of reserve accounts in the transactions.”

Click here to read the release from Moody’s.

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