Fitch Affirms & Upgrades CarMax Auto Owner Trust 2012-1

As part of its ongoing surveillance, Fitch Ratings affirms three and upgrades two classes of CarMax Auto Owner Trust 2012-1 as follows:

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

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

-- Class B affirmed at 'AAAsf'; Outlook Stable;

-- Class C upgraded to 'AAAsf' from 'AAsf'; Outlook Stable from Positive;

-- Class D upgraded to 'Asf' from 'BBBsf'; Outlook Positive.

KEY RATING DRIVERS

The rating actions are based on available credit enhancement and loss performance. The collateral pool continues 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 transaction.

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 impact 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 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 pool 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 7, 2014);

-- 'Global Structured Finance Rating Criteria' (Aug. 4, 2014);

-- 'Representations, Warranties, and Enforcement Mechanisms in the Global Structured Finance Transactions' (April 17, 2012);

-- 'CarMax Auto Owner Trust 2012-1 - Appendix (Feb. 6, 2012).

Applicable Criteria and Related Research:

Rating Criteria for U.S. Auto Loan ABS
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=738718

Global Structured Finance Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=754389

Representations, Warranties and Enforcement Mechanisms in Global Structured Finance Transactions
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=799248

CarMax Auto Owner Trust 2012-1 - Appendix
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=670683

Additional Disclosure

Solicitation Status
http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=958676

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