OREANDA-NEWS. S&P Global Ratings today assigned its preliminary ratings to TCF Auto Receivables Owner Trust 2016-1's $501.62 million asset-backed notes series 2016-1 (see list).

The note issuance is an asset-backed securities transaction backed by prime auto loan receivables.

The preliminary ratings are based on information as of Sept. 8, 2016. Subsequent information may result in the assignment of final ratings that differ from the preliminary ratings.

The preliminary ratings reflect:The availability of approximately 15.8%, 12.9%, 10.0%, and 6.7% credit support (including excess spread) for the class A, B, C, and D notes, respectively, based on our various stressed cash flow scenarios. These credit support levels provide coverage of approximately 5.0x, 4.0x, 3.0x, and 2.0x our 2.70%-3.00% expected cumulative net loss range for the class A, B, C, and D notes, respectively. The timely interest and principal payments made under stress cash flow modeling scenarios that are appropriate to the assigned preliminary ratings. The expectation that under a moderate ('BBB') stress scenario, all else being equal, the ratings on the class A and B notes will remain within one rating category of the assigned preliminary ratings during the first year, and the ratings on the class C and D notes will remain within two rating categories of the assigned preliminary ratings during the first year. This is within the rating tolerance for 'AAA', 'AA', 'A', and 'BBB' rated securities, as outlined in our credit stability criteria (see "Methodology: Credit Stability Criteria," published May 3, 2010). The credit enhancement in the form of subordination, overcollateralization, a reserve account, and excess spread. The characteristics of the collateral pool being securitized. The transaction's payment and legal structures.