Two subprime auto issuers are planning to sell their respective asset-backed transactions. These companies join other auto firms in the ABS market this week including Toyota Motor Credit Corp. and Enterprise Fleet Management.

United Auto Credit is planning to sell four classes of subprime auto ABS via a deal called United Auto Credit Securitization Trust 2012-1 worth $184 million.

The offering is divided into a class A-1 worth $61.4 million, class A-2 $68.1 million, class B $16 million, class C $21.2 million, and class D $17.3 million.

Kroll Bond Rating Agency has assigned preliminary ratings to the deal, which the rating agency said is backed by roughly $195 million of subprime auto loan receivables.

According to Kroll, the preliminary ratings reflect the initial credit enhancement levels that range from 35.60% for the class A notes to 7.65% for the class D notes. These build up to 41.45% and 13.50% for the class A and class D notes, respectively, the rating agency stated. 

The deal also has a quarterly cumulative new loss trigger that, if breached, will increase the targeted credit enhancement to 47.70% and 19.75% for the class A notes and the class D notes, respectively, Kroll said.

Subprime lender Westlake Financial Services is also planning a $377 million sale of auto ABS, according to Bloomberg. The deal's, which the news service said might price this week, lead managers are Wells Fargo Securities and Royal Bank of Scotland. The co-manager on the transaction is JPMorgan Securities, Bloomberg reported. The securitization is rated by Standard & Poor's.


Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.