Ford Credit Auto Owner Trust is preparing to raise at least $1.3 billion in securities backed by prime quality auto loans, which can be upsized to $1.5 billion.
The series 2025-B series will issue the asset-backed securities (ABS) through seven tranches of class A, B and C notes. Maturities range from Oct. 15, 2026 on the A1 notes to March 15, 2033 on the class C notes, say analysts at Moody's Ratings.
Notes are fixed, except for the A2B tranche, which are priced against the one-month Secured Overnight Financing Rate (SOFR), Moody's said.
All the class A notes, from A1 through A4, benefit from credit enhancements that equal 5.25% of their outstanding pool balances, according to Fitch Ratings, which also assessed the notes. Classes B and C provide the subordination, and their levels of credit enhancement amount to 2.25% and 0.25%, respectively.
More than 36,000 loans are in the collateral pool, which primarily (93.5%) finance new vehicles. Also, the pool is composed of a high concentration of trucks and utility vehicles, as Ford continues to phase out smaller vehicles from their fleets, Fitch said.
On average, the loans have a balance of $37,690, with a loan-to-value (LTV) ratio of 100.4% on a weighted average (WA) basis, and a FICO score of 752 on a WA basis, according to Fitch.
Credit performance in Ford's managed portfolio has been normalized recently, presenting a neutral credit picture, Fitch said. As of June 2025, delinquencies in Ford's managed portfolio reached 1.38%, up from 1.19% from a year earlier. It was still lower than 1.62% from yearend 2019, however. Also, net losses were 0.54% as of June 2025, but that was slightly higher than the 0.42% seen in the same period a year earlier.
Barclays Capital is the transaction's lead underwriter, said Fitch. Asset Securitization Report's deal database finds that Lloyds TSB and TD Securities.
Moody's assigned P1 to the A1 class of notes; Aaa to the A2 through A4 tranches; and A2 to the class B tranche. Fitch assigns F1+ to the A1 notes; AAA to the A2 through A4 classes; and AA to the class B notes.
