Honda Auto Receivables 2021-3 Owner Trust Honda Auto Receivables 2021-3 Owner Trust

Presale:
Honda Auto Receivables 2021-3 Owner Trust

August 12, 2021
PRIMARY CREDIT ANALYST
Preliminary Ratings Amanda A Augustine

New York
Preliminary Interest Preliminary base Preliminary upsize Legal final
+ 1 (212) 438 1607
Class rating Type rate amount (mil. $) amount (mil. $)(i) maturity date
amanda.augustine
A-1 A-1+ (sf) Senior Fixed 289.00 346.00 Aug. 18, 2022 @spglobal.com
A-2 AAA (sf) Senior Fixed 457.00 549.00 Feb. 20, 2024 SECONDARY CONTACT
A-3 AAA (sf) Senior Fixed 457.00 549.00 Nov. 18, 2025 Jennie P Lam
New York
A-4 AAA (sf) Senior Fixed 112.79 134.95 Dec. 20, 2027
+ 1 (212) 438 2524
Certificates NR Subordinate 33.74 40.49 jennie.lam
@spglobal.com
Note: This presale report is based on information as of Aug. 12, 2021. The ratings shown are preliminary. This report does not constitute a
recommendation to buy, hold, or sell securities. Subsequent information may result in the assignment of final ratings that differ from the
preliminary ratings. (i)The anticipated bond sizes if the aggregate initial principal balance of the notes is upsized to $1.62 billion. NR--Not
rated.
Profile
Expected closing date Aug. 25, 2021.
Collateral Prime auto loan receivables.
Originator, sponsor, servicer, and administrator American Honda Finance Corp. (A-/Negative/A-2).
Depositor American Honda Receivables LLC.
Issuer Honda Auto Receivables 2021-3 Owner Trust.
Lead underwriter Barclays Capital Inc.
Indenture trustee Citibank N.A.
Owner trustee The Bank of New York Mellon.
Delaware trustee BNY Mellon Trust of Delaware.
Credit Enhancement Summary (%)(i)

HAROT 2021-3 HAROT 2021-3 (if upsized) HAROT 2021-2
Initial Floor Initial Floor Initial Floor
Class A
Subordination 2.50 2.50 2.50 2.50 2.50 2.50
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Presale: Honda Auto Receivables 2021-3 Owner Trust
Credit Enhancement Summary (%)(i) (cont.)

HAROT 2021-3 HAROT 2021-3 (if upsized) HAROT 2021-2
Initial Floor Initial Floor Initial Floor
Reserve account 0.25 0.25 0.25 0.25 0.25 0.25
Total 2.75 2.75 2.75 2.75 2.75 2.75
Estimated annual excess spread (with YSA)(ii) 2.41 2.43 2.36
(i)Percentage of the initial receivables balance. (ii)Estimated excess spread before pricing. Includes the 1% servicing fee. HAROT--Honda Auto
Receivables Owner Trust. YSA--Yield supplement account.
Rationale
The preliminary ratings assigned to Honda Auto Receivables 2021-3 Owner Trust's (HAROT
2021-3's) asset-backed notes series 2021-3 reflect:
- The availability of approximately 6.2% credit support (including excess spread) for the class
A-1, A-2, A-3, and A-4 notes (collectively, "the class A notes") based on stressed cash flow
scenarios. This credit support level provides coverage of approximately 9.5x of the upper bound
of our expected net loss range of 0.55%-0.65% and is commensurate with the assigned
preliminary 'A-1+ (sf)' and 'AAA (sf)' ratings on the class A notes (see the S&P Global Ratings'
Expected Loss and Cash Flow Modeling Assumptions And Results sections later in this report).
- The timely interest and full principal payments made under the stressed cash flow modeling
scenarios appropriate for the assigned preliminary ratings (see the Cash Flow Modeling
Assumptions And Results section). In our modeling approach, we used a bifurcated pool
method. (For cash flow purposes, the subvened/nonsubvened cut-off annual percentage rate
[APR] is 4.0%.)
- Our expectation that under a moderate ('BBB') stress scenario (2.0x our expected loss level), all
else being equal, our preliminary 'AAA (sf)' ratings on the class A notes will be within the credit
stability limits specified by section A.4 of the appendix in S&P Global Ratings Definitions (see
"S&P Global Ratings Definitions," published Jan. 5, 2021).
- The transaction's credit enhancement in the form of an unrated subordinate certificate, a

reserve fund, a yield supplement account (YSA), and excess spread (see the Credit
Enhancement Summary table above).
- The collateral characteristics of the securitized pool.
- American Honda Finance Corp.'s (AHFC) extensive securitization performance history.
- Our view of the transaction's payment and legal structures.
Environmental, Social, And Governance (ESG)

Our rating analysis considers a transaction's potential exposure to ESG credit factors. For the auto
ABS sector, we view the exposure to environmental credit factors as above average, to social
credit factors as average, and to governance credit factors as below average (see "ESG Industry
Report Card: Auto Asset-Backed Securities," published March 31, 2021).
In our view, the exposure to ESG credit factors in this transaction is in line with our sector

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benchmark. Exposure to environmental credit factors is generally viewed as above average, given
that the collateral pool primarily comprises vehicles with internal combustion engines (ICE), which
create emissions of pollutants, including greenhouse gases. While the adoption of electric vehicles
and future regulation could in time lower ICE vehicle values, we believe that our current approach
to evaluating recovery and residual values adequately account for vehicle values over the relatively
short expected life of the transaction. As a result, we have not separately identified this as a
material ESG credit factor in our analysis.
Changes From The Series 2021-2 Transaction

The collateral composition and credit enhancement changes from the series 2021-2 transaction
include (figures in parentheses refer to the upsized 2021-3 pool if the two pools differ) the
following:
- The YSA required rate decreased to 3.50% from 3.80%.
- The estimated annual excess spread before pricing increased to approximately 2.41% (2.43% if
upsized) from 2.36%.
- The concentration of new vehicles increased marginally to 90.90% (90.88% if upsized) from
90.29%.
- The concentration of loans with original term of 61-72 months increased slightly to 29.47%
(29.52% if upsized) from 28.92%.
- The concentration of credit grade-A obligors increased to 79.44% (79.35% if upsized) from
78.67%.
Overall, we believe the series 2021-3 collateral pool is generally similar to 2021-2 (see the
Collateral Pool Analysis section for the collateral pool comparison to 2021-2 and prior HAROT
pools). Our expected loss accounts for the originator's consistent underwriting standards, strong
securitization performance to date, and comparable collateral characteristics. Our expected loss
range for the series 2021-3 transaction is 0.55%-0.65%, which is lower than that for series 2021-2
(see the S&P Global Ratings' Expected Loss section for more information).
Transaction Overview
HAROT 2021-3 is AHFC's third auto loan securitization in 2021. The notes will be supported by a
noninterest-bearing, nonamortizing subordinate certificate equal to 2.50% of the initial collateral
balance, a nonamortizing reserve account equal to 0.25% of the initial collateral balance, a YSA,
and excess spread. The pool's unadjusted weighted average APR is approximately 2.43%. HAROT
2021-3 will utilize the cash YSA funded by the note proceeds, which will increase the yield on the
pool to 3.90% (3.91% if upsized), to generate additional excess spread to support the transaction.
Interest and principal on the notes are scheduled to be paid on the 18th of each month, or the next
business day, starting Sept. 20, 2021. We expect the notes to have a fixed interest rate, and
principal on the notes will be paid sequentially.

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Transaction Structure
The HAROT 2021-3 transaction incorporates the following structural features:
- A sequential-pay mechanism that will increase credit enhancement for the senior notes as the
pool amortizes.
- A money market tranche that will receive principal payments senior in the waterfall.
- Subordinate certificates, which will not receive principal payments until the class A notes have
fully paid down.
- A nonamortizing reserve fund, which will equal 0.25% of the initial collateral balance.
Chart 1 shows the transaction structure.
Chart 1

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The YSA
On the closing date, the seller will fund the YSA with an initial $43.08 million ($51.58 million if
upsized) deposit, which is approximately 3.19% of the initial pool balance. The YSA is designed
primarily to supplement the interest collections on the receivables that have APRs less than the
3.50% required rate, referred to as "discount receivables." On each payment date, funds are
withdrawn from the YSA in an amount necessary to increase the interest rate on the discount
receivables to the required rate. These funds are deposited into the collection account monthly to
make distributions to the noteholders. On each payment date, the YSA will decline to the present
value of the sum of all yield supplement amounts for future payment dates, assuming loan
payments are made as scheduled. Any excess funds in the YSA will be released to the collection
account and will be available, if necessary, to cover net losses.
In rating this transaction, S&P Global Ratings will review the relevant legal matters outlined in its
criteria.
Payment Structure
Distributions will be made from available funds according to the priority shown in table 1.
Table 1
Payment Waterfall
Priority Payment
1 Servicing fee of 1%, including any unpaid servicing fees and nonrecoverable advances.
2 Indenture trustee, owner trustee, and asset representations reviewer fees, capped at $250,000 per year.
3 Class A note interest, paid pro rata to the class A noteholders.
4 Class A note principal, paid sequentially.
5 Certificate interest, if applicable(i).
6 Certificate principal (this amount will remain at zero until the class A notes are paid in full).
7 Replenish the reserve fund to the specified reserve fund balance.
8 Any unpaid indenture trustee, owner trustee, and asset representations reviewer fees.
9 Any remainder to the depositor.
(i)The certificate interest is 0.00%.
Managed Portfolio
As of June 30, 2021, AHFC's serviced portfolio showed relatively stable performance, consisting of
contracts totaling $34.05 billion (see table 2), up approximately 13.7% from a year earlier. Total
delinquencies (including repossessions) increased to 0.83% from 0.77% a year earlier, driven by
higher 31-60 day delinquencies, which may be correlated with a decrease in extension activity,
while longer-term delinquencies and repossessions were stable. During the early months of the
COVID-19 pandemic, AHFC temporarily suspended repossession activities nationwide, but has
since resumed repossession activity where permitted by local law. For the three months ended
June 30, 2021, annualized net losses as a percentage of the average principal were 0.02%--57
basis points lower than those of a year earlier (0.59%). We attribute this, in part, to enhanced

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unemployment benefits and government stimulus payments, as well as to strong recovery rates as
a result of supply constraints in the auto market.
Table 2
Managed Portfolio(i)
For the three months
ended June 30 Year ended March 31
2021 2020 2021 2020 2019 2018 2017 2016
Period-end loan balance 34.051 29.953 32.646 29.791 30.299 27.890 26.252 25.938
outstanding (bil. $)(ii)
Avg. loan balance outstanding 33.622 29.542 31.066 30.423 29.308 27.142 25.938 27.215
(bil. $)
Repossessions (mil. $)(iii) 21.049 17.338 36.007 56.417 48.640 46.981 38.615 31.299
Repossessions as a % of 0.06 0.06 0.11 0.19 0.16 0.17 0.15 0.12

period-end loan balance
outstanding
Total delinquencies and 0.83 0.77 0.81 1.39 1.18 1.13 0.98 1.08
repossessions as a % of the
period-end receivables
outstanding
Recoveries (mil. $) 23.420 22.460 101.690 84.813 77.482 63.813 62.788 57.672
Net loss (mil. $) 1.997 43.770 88.472 152.949 134.799 111.631 94.529 76.127
Net loss as a % of the avg. 0.02 0.59 0.28 0.50 0.46 0.41 0.36 0.28
amount outstanding(iv)
(i)Includes contracts that AHFC has sold but is still servicing. (ii)The remaining principal balance and unearned finance charges for all
outstanding contracts. (iii)Outstanding principal amount of contracts for which the related vehicle has been repossessed, but hasn't been
liquidated. (iv)Annualized.
Collateral Pool Analysis

On the closing date, we expect series 2021-3 to consist of approximately $1.35 billion ($1.62 billion
if upsized) in motor vehicle loans. We compared the HAROT 2021-3 collateral pool with that of
AHFC's previous securitization pools and a recent transaction from AHFC's peer in the prime auto
loan sector: Toyota Auto Receivables 2021-B Owner Trust (see table 3).
Table 3
Collateral Comparison(i)
HAROT
2021-3 (if Toyota

2021-3 upsized) 2021-2 2021-1(ii) 2020-3 2020-2 2021-B
Receivables balance 1.35 1.62 1.62 1.62 2.16 1.35 1.67

(bil. $)
No. of receivables 71,771 86,105 88,835 92,282 111,971 66,018 78,636
Avg. loan balance ($) 18,803 18,808 18,230 17,549 19,284 20,442 21,198
Weighted avg. APR 2.43 2.43 2.45 2.60 2.90 3.28 3.08
excluding the YSA
(%)

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Table 3
Collateral Comparison(i) (cont.)

HAROT
2021-3 (if Toyota

2021-3 upsized) 2021-2 2021-1(ii) 2020-3 2020-2 2021-B
Weighted avg. 61.71 61.72 61.58 61.48 58.84 61.50 65.43

original term (mos.)
Weighted avg. 49.44 49.44 49.43 48.65 46.37 49.67 52.60

remaining term
(mos.)
Weighted avg. 12.27 12.28 12.15 12.83 12.47 11.83 12.84

seasoning (mos.)
Weighted avg. FICO 771 771 771 772 771 776 767
score
Original term 61-72 29.47 29.52 28.92 28.70 27.97 28.83 50.61
mos. (%)
Original term greater 0.00 0.00 0.00 0.00 0.00 0.00 0.00
than 72 mos. (%)
% of new vehicles 90.90 90.88 90.29 91.74 90.61 91.02 74.59
% of used vehicles 9.10 9.12 9.71 8.26 9.39 8.98 25.41
% of Honda vehicles 90.54 90.41 90.76 91.42 90.91 91.11 N/A
% of Acura vehicles 9.46 9.59 9.24 8.58 9.09 8.89 N/A
Top five state concentrations (%)
CA=17.27 CA=17.31 CA=17.11 CA=17.82 CA=17.34 CA=18.96 CA=26.03
TX=9.27 TX=9.26 TX=9.18 TX=9.17 TX=8.62 TX=9.66 TX=12.96
FL=5.93 FL=5.88 FL=5.67 FL=5.47 MD=6.28 NJ=8.17 IL=4.54
IL=5.40 IL=5.45 IL=5.44 IL=5.40 PA=5.49 OH=5.39 PA=4.35
OH=5.07 OH=5.12 OH=5.07 OH=4.90 IL=4.75 IL=5.19 NJ=3.64
Credit grade composition (%)
A 79.44 79.35 78.67 80.18 79.27 80.35 N/A
B 13.20 13.19 12.40 12.90 14.41 13.31 N/A
C 6.16 6.26 7.76 5.85 5.34 5.40 N/A
D 1.20 1.20 1.17 1.07 0.98 0.94 N/A
(i)All percentages are of the initial receivables balance. (ii)Not rated by S&P Global Ratings. HAROT--Honda Auto Receivables Owner Trust.
Toyota 2021-B--Toyota Auto Receivables 2021-B Owner Trust. APR--Annual percentage rate. N/A--Not applicable.
We view the credit characteristics as comparable with other super prime pools (those with
weighted average FICO scores generally greater than 740) and similar to the pool characteristics
found in AHFC's 2013-2021 securitizations. The series 2021-3 pool features a weighted average
FICO score of approximately 771 and a high concentration of credit grade-A loans, in addition to a
weighted average seasoning of approximately 12 months.
Any receivable for which AHFC's records, as of the cutoff date, indicate that the related obligor is
currently in an extension period has been excluded from the receivables pool.

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Securitization Performance
We currently rate nine outstanding HAROT transactions. We revised our lifetime loss expectations
for series 2018-1, 2018-2, 2018-4, 2019-1, and 2020-2 in July 2021. We revised our lifetime loss
expectations for series 2019-3 and 2019-4 in December 2020. In our view, all of the classes
currently have adequate credit enhancement at their current rating levels. We will continue to
monitor the performance of the outstanding transactions to ensure that the credit enhancement
remains sufficient to cover our cumulative net loss expectations under our stress scenarios for
each of the rated classes. (See charts 2, 3, and 4, and table 4.)
Chart 2 Chart 3
Chart 4

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Table 4
Performance Data For Outstanding S&P Global Ratings Credit-Rated HAROT

Transactions(i)
Pool 60+ day Initial lifetime Revised lifetime

Transaction/series Month factor (%) CNL (%) delinquency (%) expected CNL (%) expected CNL (%)(ii)
2018-1 41 9.64 0.20 0.11 0.50-0.60 Up to 0.25
2018-2 38 12.68 0.17 0.12 0.50-0.60 Up to 0.25
2018-4 32 21.51 0.13 0.04 0.50-0.60 Up to 0.25
2019-1 29 25.55 0.13 0.05 0.50-0.60 Up to 0.25
2019-3 23 36.54 0.15 0.08 0.50-0.60 0.50-0.60
2019-4 20 42.79 0.12 0.10 0.50-0.60 0.50-0.60
2020-2 14 56.67 0.05 0.03 0.90-1.10 0.35–0.45
2020-3 10 66.05 0.08 0.10 0.90-1.10 N/A
2021-2 2 92.23 0.00 0.04 0.65-0.75 N/A
(i)As of the July 2021 distribution. (ii)Revised in July 2021 for series 2018-1, 2018-2, 2018-4, 2019-1, and 2020-2. Revised in December 2020 for
series 2019-3 and 2019-4. HAROT--Honda Auto Receivables Owner Trust. CNL--Cumulative net loss. N/A--Not applicable.
S&P Global Ratings' Expected Loss: 0.55%-0.65%

To derive the transaction's base-case loss, we analyzed AHFC's paid-off securitized pools'
cumulative loss performance from 2000 to 2017 and the more-recent loss performance of the
outstanding securitizations from 2018 to 2020. We used the data from the paid-off pools to create
loss-timing curves to project the outstanding transactions' net losses. We also looked at the
cumulative recovery rates and delinquencies by vintage and considered other issuers'
securitizations that are similar to AHFC's.
Based on our view of AHFC's securitization performance, collateral pool characteristics, peer
comparison, origination static pool loss performance, and managed portfolio performance, we
expect the series 2021-3 pool to experience cumulative net losses (CNLs) of 0.55%-0.65%.
Since the onset of the COVID-19 pandemic, we have generally implemented higher base-case
cumulative net loss assumptions and adjusted certain cash flow assumptions in our analyses of
U.S. auto loan ABS transactions (see "The Potential Effects Of COVID-19 On U.S. Auto Loan ABS,"
March 26, 2020). These adjustments reflected our view, at the time, of the negative impact the
COVID-19-induced economic dislocation could have on wages, unemployment, and, ultimately, the
ability of borrowers to continue making payments on their auto loans. We have now observed the
impact of the pandemic through more than a year of performance data on outstanding U.S. auto
loan ABS securitizations, which show better-than-expected performance (see "U.S. Auto Loan
ABS Is Navigating Through COVID-19 With Better-Than-Expected Performance," published Feb.
10, 2021).
While we continue to believe some uncertainty remains due to the pandemic, our analyses
incorporate our view of the latest developments, including the better-than-expected performance
results, AHFC's steps to mitigate higher losses, and our most recent macroeconomic outlook,
which incorporates a higher baseline forecast for U.S. GDP growth and lower unemployment rates.
As such, we lowered our base-case cumulative net loss assumptions accordingly. We will continue
to monitor early performance indicators and reflect them in our analyses on a forward-looking

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basis (see "Auto Loan ABS COVID-19 Loss Adjustment Reassessed After Better-Than-Expected
Performance," published July 8, 2021).
Cash Flow Modeling Assumptions And Results

Cash flow modeling tests the availability and timing of excess spread, which can be affected by
many factors, such as the absolute level and timing of defaults, prepayment speeds, payment
timing lags, and the collateral term.
We modeled the series 2021-3 transaction to simulate 'AAA' rating stress scenarios under front-
and back-loaded loss curves (see table 5). In our model, we used a bifurcated-pool method in
which the subvened loans (for cash flow purposes, the subvened/nonsubvened cut-off APR is 4%)
prepay at slower rates than nonsubvened loans, and the subvened loans' loss contribution to the
pool's total aggregate losses is less than the subvened loans' proportional representation in the
pool. Performance data indicate that lower-APR loans tend to prepay and default less frequently
than higher-APR loans.
Table 5
Cash Flow Assumptions/Results
Front-loaded scenario Back-loaded scenario
Class A A
Preliminary rating AAA (sf) AAA (sf)
Cumulative net loss timing (mos.) 12/24/36/48 12/24/36/48
Cumulative net loss timing aggregate (%) 45/81/93/100 20/58/86/100
Subvened(i) 42/78/92/100 18/55/83/100
Nonsubvened(i) 57/93/100 31/72/98/100
% subvened receivables 85.78 (85.72 if upsized) 85.78 (85.72 if upsized)
% nonsubvened receivables 14.22 (14.28 if upsized) 14.22 (14.28 if upsized)
Loss allocation (%)
Subvened 80.0 82.0
Nonsubvened 20.0 18.0
ABS voluntary prepayments (%)
Subvened 0.25 0.25
Nonsubvened 1.80 1.80
Recoveries (%) 50 50
Recovery lag (mos.) 3 3
Approximate break-even levels (%)(ii) 6.3 6.2
(i)The subvened/nonsubvened cut-off APR is 4.0%. (ii)The maximum CNLs on the pool that the transaction can withstand without triggering a
payment default on the class A notes. ABS--Absolute prepayment speed. APR--Annual percentage rate. CNL--Cumulative net loss.
The break-even results show that the class A notes have sufficient credit enhancement to
withstand a stressed net loss level that is consistent with the assigned preliminary ratings of 'AAA
(sf)'.

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Sensitivity Analysis
Besides analyzing break-even cash flows, we conducted a sensitivity analysis to see whether
under a moderate ('BBB') stress scenario, all else being equal, our preliminary ratings will be
within the credit stability limits specified by section A.4 of the appendix contained in S&P Global
Rating Definitions (see "S&P Global Ratings Definitions," published Jan. 5, 2021). We found that
our preliminary 'AAA (sf)' ratings on the notes are consistent with the tolerances outlined in those
credit stability limits. This indicates that we would not assign 'AAA' ratings if, under moderate
stress conditions, the ratings would be lowered by more than one category within the first year.
Moderate loss scenario: 1.60% (2.0x our minimum 'B' credit enhancement
level)
Under the 1.60% moderate stress loss scenario, we again ran a bifurcated-pool method whereby
the nonsubvened collateral defaulted and prepaid faster than the subvened collateral, and the
subvened loans' loss contribution to the pool's total aggregate losses is less than the subvened
loans' proportional representation in the pool. (see table 6).
Table 6
Sensitivity Analysis Summary: Moderate Loss Scenario
Cumulative net loss level (%) 1.60
Loss timing (12/24/36/48) aggregate (%) 44/78/92/100
Subvened 42/78/92/100
Nonsubvened 49/80/94/100
Voluntary ABS (nonsubvened/subvened) (%)(i) 1.50/0.25
Servicing fee (%) 1.00
(i)The subvened/nonsubvened cut-off APR is 4.0%. ABS--Absolute prepayment speed. APR--Annual percentage rate.

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Chart 5 Chart 6
Money Market Tranche Sizing

The proposed legal final maturity date for the money market tranche (class A-1) is Aug. 18, 2022.
To test whether the money market tranche can be repaid by the proposed legal final date, we ran
cash flows using assumptions to delay the principal collections during that time period. We
assumed zero defaults, and we saw that the money market tranche would be paid off in full at
least two months before the legal final maturity date, assuming a zero absolute prepayment
speed for the subvened collateral and a 0.25% absolute prepayment speed for the nonsubvened
collateral.
Legal Final Maturity

To test the legal final maturity dates set for long-dated tranches (classes A-2 and A-3), we
determined the date that the respective notes would be fully amortized in a zero-loss,
zero-prepayment scenario and then added three months to the result. For the longest-dated
security (class A-4), AHFC added at least six months to the tenor of the longest receivable in the
pool to accommodate extensions on the receivables. Furthermore, in the break-even scenario for
the preliminary rating level, we confirmed that there was sufficient credit enhancement to cover
losses and fully repay the related notes by the legal final maturity dates.
AHFC
AHFC is a wholly owned subsidiary of American Honda Motor Co. Inc., which is a wholly owned
subsidiary of Honda Motor Co. Ltd. (A-/Negative/A-2). Honda Motor Co. Ltd., a Japanese
corporation, is a worldwide manufacturer and distributor of motor vehicles, motorcycles, and
power equipment.
AHFC is a California corporation and was incorporated in 1980. Its principal offices are in

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Torrance, Calif. The company provides wholesale financing to authorized dealers and acquires
retail loans and leases that were made to retail customers, supporting the sale of Honda and
Acura vehicles in the U.S.
Related Criteria
- Criteria | Structured Finance | General: Global Framework For Payment Structure And Cash
Flow Analysis Of Structured Finance Securities, Dec. 22, 2020
- Criteria | Structured Finance | Legal: U.S. Structured Finance Asset Isolation And
Special-Purpose Entity Criteria, May 15, 2019
- Criteria | Structured Finance | General: Counterparty Risk Framework: Methodology And

Assumptions, March 8, 2019
- Criteria | Structured Finance | General: Incorporating Sovereign Risk In Rating Structured

Finance Securities: Methodology And Assumptions, Jan. 30, 2019
- General Criteria: Methodology For Linking Long-Term And Short-Term Ratings, April 7, 2017
- Criteria | Structured Finance | General: Global Framework For Assessing Operational Risk In
Structured Finance Transactions, Oct. 9, 2014
- General Criteria: Global Investment Criteria For Temporary Investments In Transaction

Accounts, May 31, 2012
- General Criteria: Principles Of Credit Ratings, Feb. 16, 2011
- Criteria | Structured Finance | ABS: General Methodology And Assumptions For Rating U.S. Auto
Loan Securitizations, Jan. 11, 2011
- Criteria | Structured Finance | General: Methodology For Servicer Risk Assessment, May 28,
2009
Related Research
- Economic Research: U.S. Real-Time Data: Growth Is Still On Track Despite Rising COVID-19
Cases, July 23, 2021
- Economic Research: U.S. Biweekly Economic Roundup: Auto Sector Problems Leave Imprints
Throughout Major Economic Data, July 16, 2021
- Ten Ratings Affirmed On Five Honda Auto Receivables Owner Trust Transactions, July 14, 2021
- Auto Loan ABS COVID-19 Loss Adjustment Reassessed After Better-Than-Expected

Performance, July 8, 2021
- Global Economic Outlook Q3 2021: Picking Up Steam, Fueled By Vaccinations, June 30, 2021
- Credit Conditions North America Q3 2021: Looking Ahead, It’s Looking Up, June 29, 2021
- Economic Outlook: U.S. Q3 2021: Sun, Sun, Sun, Here It Comes, June 25, 2021
- ESG Industry Report Card: Auto Asset-Backed Securities, March 31, 2021
- U.S. Auto Loan ABS Is Navigating Through COVID-19 With Better-Than-Expected Performance,
Feb. 10, 2021

on the last page.
- Six Ratings Affirmed On Two Honda Auto Receivables Owner Trust Transactions, Dec. 17, 2020
- Honda Motor Co. Ltd., Aug. 30, 2020
- The Potential Effects of COVID-19 On U.S. Auto Loan ABS, March 26, 2020
- Global Structured Finance Scenario And Sensitivity Analysis 2016: The Effects Of The Top Five
Macroeconomic Factors, Dec. 16, 2016

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Honda Auto Receivables 2021-3 Owner Trust Honda Auto Receivables 2021-3 Owner Trust

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Honda Auto Receivables 2021-3 Owner Trust

PRIMARY CREDIT ANALYST

Preliminary Ratings Amanda A Augustine

Expected closing date Aug. 25, 2021.

Collateral Prime auto loan receivables.

Depositor American Honda Receivables LLC.

Issuer Honda Auto Receivables 2021-3 Owner Trust.

Lead underwriter Barclays Capital Inc.

Indenture trustee Citibank N.A.

Owner trustee The Bank of New York Mellon.

Delaware trustee BNY Mellon Trust of Delaware.

Credit Enhancement Summary (%)(i)

Initial Floor Initial Floor Initial Floor

Subordination 2.50 2.50 2.50 2.50 2.50 2.50

www.standardandpoors.com August 12, 2021 1

Credit Enhancement Summary (%)(i) (cont.)

Initial Floor Initial Floor Initial Floor

Reserve account 0.25 0.25 0.25 0.25 0.25 0.25

Total 2.75 2.75 2.75 2.75 2.75 2.75

Estimated annual excess spread (with YSA)(ii) 2.41 2.43 2.36

- The transaction's credit enhancement in the form of an unrated subordinate certificate, a

- The collateral characteristics of the securitized pool.

- American Honda Finance Corp.'s (AHFC) extensive securitization performance history.

- Our view of the transaction's payment and legal structures.

Environmental, Social, And Governance (ESG)

www.standardandpoors.com August 12, 2021 2

Changes From The Series 2021-2 Transaction

- The YSA required rate decreased to 3.50% from 3.80%.

www.standardandpoors.com August 12, 2021 3

Chart 1 shows the transaction structure.

www.standardandpoors.com August 12, 2021 4

3 Class A note interest, paid pro rata to the class A noteholders.

4 Class A note principal, paid sequentially.

5 Certificate interest, if applicable(i).

7 Replenish the reserve fund to the specified reserve fund balance.

9 Any remainder to the depositor.

(i)The certificate interest is 0.00%.

www.standardandpoors.com August 12, 2021 5

2021 2020 2021 2020 2019 2018 2017 2016

Repossessions as a % of 0.06 0.06 0.11 0.19 0.16 0.17 0.15 0.12

Collateral Pool Analysis

2021-3 (if Toyota

Receivables balance 1.35 1.62 1.62 1.62 2.16 1.35 1.67

No. of receivables 71,771 86,105 88,835 92,282 111,971 66,018 78,636

www.standardandpoors.com August 12, 2021 6

Collateral Comparison(i) (cont.)

2021-3 (if Toyota

Weighted avg. 61.71 61.72 61.58 61.48 58.84 61.50 65.43

Weighted avg. 49.44 49.44 49.43 48.65 46.37 49.67 52.60

Weighted avg. 12.27 12.28 12.15 12.83 12.47 11.83 12.84

% of new vehicles 90.90 90.88 90.29 91.74 90.61 91.02 74.59

% of used vehicles 9.10 9.12 9.71 8.26 9.39 8.98 25.41

% of Honda vehicles 90.54 90.41 90.76 91.42 90.91 91.11 N/A

% of Acura vehicles 9.46 9.59 9.24 8.58 9.09 8.89 N/A

Top five state concentrations (%)

CA=17.27 CA=17.31 CA=17.11 CA=17.82 CA=17.34 CA=18.96 CA=26.03

TX=9.27 TX=9.26 TX=9.18 TX=9.17 TX=8.62 TX=9.66 TX=12.96

FL=5.93 FL=5.88 FL=5.67 FL=5.47 MD=6.28 NJ=8.17 IL=4.54

IL=5.40 IL=5.45 IL=5.44 IL=5.40 PA=5.49 OH=5.39 PA=4.35

OH=5.07 OH=5.12 OH=5.07 OH=4.90 IL=4.75 IL=5.19 NJ=3.64

Credit grade composition (%)

A 79.44 79.35 78.67 80.18 79.27 80.35 N/A