Moody's says German diesel ban impact on European auto ABS limited

FRANKFURT: Moody's on Tuesday said a German ruling to allow bans of diesel cars in German cities is credit negative for European securitised car loans, although the impact will be limited.

"The share of potentially affected diesel-vehicles in the securitised portfolios is typically in the low-single-digit percentages and only about 30 percent of the obligors reside in low emission zones," Moody's said in a note.

German auto ABS performance is so far very strong and certain stress scenarios are covered by the current credit ratings of German auto ABS, Moody's said.