Fitch Affirms Six and Upgrades Two Classes of CarMax Auto Owner Trust

As part of its ongoing surveillance, Fitch Ratings has taken the following rating actions on two series of CarMax Auto Owner Trust:

CarMax Auto Owner Trust 2010-1
--Class A-4 affirmed at 'AAAsf'; Outlook Stable;
--Class B affirmed at 'AAAsf'; Outlook Stable;
--Class C affirmed at 'AAsf'; Outlook Positive.

CarMax Auto Owner Trust 2012-1
--Class A-3 affirmed at 'AAAsf'; Outlook Stable;
--Class A-4 affirmed at 'AAAsf'; Outlook Stable;
--Class B upgraded to 'AAAsf' from 'AAsf'; Outlook Revised to Stable from Positive;
--Class C upgraded to 'AAsf' from 'Asf'; Outlook Positive;
--Class D affirmed at 'BBBsf'; Outlook Positive.

KEY RATING DRIVERS
The ratings are based on available credit enhancement and loss performance. The collateral pools continue to perform within Fitch's expectations. Under the current structure and credit enhancement, 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 documents.

The ratings reflect the quality of CarMax Business Services, LLC's retail auto loan originations, the strength of its servicing capabilities, and the sound financial and legal structure of the transactions.

RATING SENSITIVITY
Unanticipated increases in the frequency of defaults and loss severity could produce loss levels higher than the current projected base case loss proxy and impact available loss coverage and multiples levels for the transactions. 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 transactions, 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 transactions have exhibited strong performance with losses within Fitch's initial expectations with rising loss coverage and multiple levels consistent with the current ratings. A material deterioration in performance would have to occur within the asset pools to have potential negative impact on the outstanding ratings.

Fitch's analysis of the Representation and Warranties (R&W) of this transaction can be found in 'CarMax Auto Owner Trust 2012-1 - Appendix'. 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, 2012.

Additional information is available at www.fitchratings.com.

Applicable Criteria and Related Research:
--'Rating Criteria for U.S. Auto Loan ABS' (April 10, 2013);
--'Global Structured Finance Rating Criteria' (May 24, 2013).
--Representations, Warranties, and Enforcement Mechanisms in the Global Structured Finance Transactions' (April 17, 2012)
--'CarMax Auto Owner Trust 2012-1 - Appendix' (Feb. 06, 2012).

Applicable Criteria and Related Research:
CarMax Auto Owner Trust 2012-1 - Appendix
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=670683
Representations, Warranties, and Enforcement Mechanisms in Global Structured Finance Transactions -- Amended
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=676496
Global Structured Finance Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=708661
Rating Criteria for U.S. Auto Loan ABS
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=704137

Additional Disclosure
Solicitation Status
http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=813556
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Fitch Ratings
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Khadija El Mediouri, [phone]
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