NEW YORK — Despite rising delinquencies and annualized net losses for auto loan ABS in January, Fitch Ratings expects seasonal factors driven by tax refunds to benefit household finances in coming months and support lower loss rates through spring.

According to the latest Fitch Auto ABS Index results, prime delinquencies that are 60 days or longer past due rose 2 percent month-over-month to 0.51 percent in January following what analysts contend are typical seasonal patterns.

However, they pointed out the delinquency rate was down 12.1 percent versus a year earlier.

Fitch discovered annualized net losses (ANL) increased to 0.53 percent in January, an 8.2-percent rise above December but still 43-percent off the same month of last year.

The firm added the reading also is well below the historical average loss rate of 1.12 percent going back to 2001.

In the subprime sector, Fitch pointed out performance slowed month-over-month with 60-day delinquencies and ANL rising in January.

Analysts indicated delinquencies settled at 3.31 percent in January, a 3.8-percent increase but a level that was 5.2 percent below January of last year.

They noted ANL rose by 3 percent month-over-month to 6.56 percent, but the mark was 4.8 percent better year-over-year.

Fitch went on to highlight that a combination of stronger U.S. household finances with lower debt and higher savings levels and robust used-vehicle values continue to support auto ABS performance for the early part of this year.

Analysts reiterated the used-vehicle market posted three consecutive monthly gains with the Manheim Used Vehicle Value Index hitting 125.7 in January. The index was 0.5 percent higher (on a mix, milage, and seasonally adjusted basis) in January over December and 0.6 percent stronger over the same period last year.

Fitch wrapped up its outlook on asset performance stating that it continues to be stable starting the year while the rating outlook remains positive. The firm upgraded three tranches of notes in January, compared to 15 in January of last year.

Fitch also mentioned its auto ABS indices comprise of $52.81 billion of outstanding notes issued from 109 transactions. Of this amount, 80 percent comprise prime auto loan ABS and the 20 percent remaining subprime ABS.

Additional information is available at www.fitchratings.com.