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Second credit-ratings agency flags increased stress in auto-loan market

May 24, 2016

S&P Global Ratings joined rival credit-ratings agency Fitch Ratings in flagging increasing risk in the market that packages and sells low-rated auto loans.

S&P said Monday that U.S. subprime retail auto loan asset-backed securities (ABS) transactions are leading to more back-loaded losses and longer loss curves, which could weaken that portion of the complex structured finance market.

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