Fitch Rates CarMax Auto Owner Trust 2011-3

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NEW YORK--(BUSINESS WIRE)-- Fitch rates CarMax Auto Owner Trust 2011-3 as follows:

--$114,000,000 class A-1 notes 'F1+sf';

--$216,000,000 class A-2 notes 'AAAsf'; Outlook Stable;

--$198,000,000 class A-3 notes 'AAAsf'; Outlook Stable;

--$ 85,600,000 class A-4 notes 'AAAsf'; Outlook Stable;

--$ 13,650,000 class B notes 'AAsf'; Outlook Stable;

--$ 11,700,000 class C notes 'Asf'; Outlook Stable;

--$ 11,050,000 class D notes 'BBBsf'; Outlook Stable.

Fitch's ratings are based on the stable credit quality of the receivables pool, consistent portfolio and securitization performance and sound origination and servicing practices of CarMax Business Services, LLC.

Weaker Credit Quality: 2011-3 has slightly weaker credit quality than prior 2011 and 2010 pools, with a lower weighted average (WA) FICO score of 696 and weaker internal credit tiering, and contains more weaker-performing longer term loans (more than 60 months). Used cars total 98.97% of 2011-3, typical of CarMax Auto Finance (CAF) pools. The WA loan to value (LTV), debt-to-income, and payment-to-income ratios are similar to recent pools.

Increased Credit Enhancement (CE): The cash flow distribution in 2011-3 is a sequential-pay structure consistent with prior transactions. Initial hard CE in 2011-3 is proposed at levels slightly above 2011-2, and is the second lowest since 2002.

Stronger Portfolio/Securitization Performance: Losses on CAF's portfolio and 2009-2010 securitizations have declined due to improved credit quality originations and strong used vehicle values, which have supported higher recovery rates.

Positive CarMax/CAF Corporate Performance: CarMax has reported robust net profits in late 2010 and the first part of 2011. A deterioration of either entity may effect the performance of 2011-3. Servicing, along with wholesale vehicle values/recovery rates, may be negatively affected in the event of a bankruptcy filing by either CarMax or CAF.

Strong Wholesale Vehicle Market: CAF's securitizations and serviced portfolio have experienced improved loss performance, partly due to the recent strength of the wholesale vehicle market (WVM). However, risks remain as vehicle production and incentives on new vehicles increase, and continued fuel price volatility could depress used car values across the board or in certain segments. This is mitigated by Fitch's loss expectation and pool diversification.

Additional information is available at 'www.fitchratings.com'. The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has been compensated for the provision of the ratings.

Applicable Criteria and Related Research:

--'U.S. Auto Loan ABS Rating Criteria' dated April 20, 2011;

--'Global Structured Finance Rating Criteria' dated Aug. 4, 2011;

--'Structured Finance Tranche Thickness Metrics' dated July 29, 2011.

Applicable Criteria and Related Research:

U.S. Auto Loan ABS Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=614367

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=646569

Structured Finance Tranche Thickness Metrics

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=646951

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Fitch Ratings
Brian Bertsch, +1-212-908-0549
Media Relations, New York
brian.bertsch@fitchratings.com
or
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Hylton Heard, +1-212-908-0214
Senior Director
Fitch, Inc.
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New York, NY 10004
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Secondary Analyst:
Melvin Zhou, +1-212-908-0513
Director
or
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Du Trieu, +1-312-368-2091
Senior Director