Subprime auto loan securities delinquencies soar

[cashlenders]

Fitch Ratings said Tuesday that delinquencies on securities backed by subprime auto loans hit an 11-year high last month as consumer debt levels climbed in the depressed economy.

Delinquencies of 60 days or more on securities backed by subprime auto loans rose to 4.28 percent in September, the credit ratings agency reported. The rate is 40 percent higher than in September last year, and 18 percent higher than the rate in August.

Fitch attributed the sharp increase to the weak economy.

"Consumer fundamentals remain stressed given household debt levels and declining home values, as well as the deteriorating job market," the agency wrote.

Delinquencies of 60 days or more on prime auto loan-backed securities were stable at 0.71 percent in September, Fitch said. It was the third-straight month that the rate remained unchanged.

In addition, annualized net loss on prime auto loan-backed securities fell to 1.68 percent in September. That's 3 percent lower than in August.

Fitch tracks about $59 billion in asset-backed securities tied to auto loans. Of that total, 68 percent comprises prime collateral, while 32 percent comprises subprime collateral.