As part of its ongoing surveillance, Fitch Ratings has taken the following rating actions on Honda Auto Receivables 2013-2 Owner Trust and Honda Auto Receivables 2014-1 Owner Trust:

2013-2:

--Class A-3 affirmed at 'AAAsf'; Stable Outlook;

--Class A-4 affirmed at 'AAAsf'; Stable Outlook.

2014-1:

--Class A-3 affirmed at 'AAAsf'; Stable Outlook;

--Class A-4 affirmed at 'AAAsf'; Stable Outlook.

KEY RATING DRIVERS

The rating affirmations are based on available credit enhancement (CE) and loss performance. The collateral pool continues to perform within Fitch's expectations. Based on the current structure and CE, the securities are able to withstand stress scenarios consistent with the assigned ratings and make full payments to investors in accordance with the terms of the loan documents.

The ratings reflect the quality of American Honda Finance Corp.'s retail auto loan originations, the strength of its servicing capabilities, and the sound financial and legal structure of the transactions.

RATING SENSITIVITIES

Unanticipated increases in the frequency of defaults and loss severity could produce loss levels higher than the current projected base case loss proxy, and affect available loss coverage and multiples levels for the transaction. Lower loss coverage could impact ratings and Rating Outlooks, depending on the extent of the decline in coverage.

In Fitch's initial review of the transaction, the notes were found to have limited sensitivity to a 1.5x and 2.5x increase of Fitch's base case loss expectation. To date, the transaction has exhibited strong performance with losses well within Fitch's initial expectations, with rising loss coverage and multiple levels. Therefore, a material deterioration in performance would have to occur within the asset pool to have a negative impact on the outstanding ratings.

DUE DILIGENCE USAGE

No third-party due diligence was provided or reviewed in relation to this rating action.

Fitch's analysis of the Representation and Warranties (R&W) of these transactions can be found in 'Honda Auto Receivables 2013-2 Owner Trust - Appendix', and 'Honda Auto Receivables 2014-1 Owner Trust. These R&W are compared to those of typical R&W for the asset class as detailed in the special report 'Representations, Warranties, and Enforcement Mechanisms in the Global Structured Finance Transactions' dated April 17, 2015.

Additional information is available at www.fitchratings.com.

Applicable Criteria

Counterparty Criteria for Structured Finance and Covered Bonds: Derivative Addendum (pub. 14 May 2014)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=744175

Criteria for Servicing Continuity Risk in Structured Finance (pub. 17 Dec 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=875586

Global Structured Finance Rating Criteria (pub. 06 Jul 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=867952

Rating Criteria for Structured Finance Servicers (pub. 23 Apr 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=864375

Rating Criteria for U.S. Auto Loan ABS (pub. 15 Oct 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=872046

Related Research

Honda Auto Receivables 2013-2 Owner Trust -- Appendix

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=706320

Honda Auto Receivables 2014-1 Owner Trust--Appendix

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=736805

Additional Disclosures

Dodd-Frank Rating Information Disclosure Form

https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=997778

Solicitation Status

https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=997778

Endorsement Policy

https://www.fitchratings.com/jsp/creditdesk/PolicyRegulation.faces?context=2&detail=31

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