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