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Alloya Auto Receivables to rise $150 million in ABS

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A pool of prime auto receivables composed of retail installment sales contracts from three credit unions will collateralize $150 million in asset-backed securities (ABS), coming to market through the Alloya Auto Receivables Trust, 2025-1.

Alloya Auto will issue the notes and repay them through a structure with seven tranches of class A, B, C and D notes, according to S&P Global Ratings. All the notes are fixed, and they have legal final maturity dates ranging from June 25, 2026 through March 25, 2033.

Blaze Credit Union, Consumers Credit Union and Interra Credit Union originated the loans, and they will service their respective loans in the portfolio, S&P said.

Alloy Auto Receivables will repay noteholders through a senior-subordinate structure, S&P said.

Subordination confers most of the credit enhancement to the notes, with levels of 13.65%, 9.10%, 3.60% and 0% on the classes A, B, C, and D, respectively, according to S&P.

Overcollateralization and a reserve account confer credit enhancement representing 0.50% and 4.00% of the class A, B, C, and D's respective pool balance, S&P said.

The pool of 10,271 receivables have an average original balance of $25,864, and an annual percentage rate (APR) of 8.42%, S&P said.

Loans with original terms of 73-84 months represent 36.26% of the pool, slightly higher than the 32.39% of loans with terms of 61-72 months. Also, used vehicles made up 83.24% of the portfolio, according to S&P.

S&P assigns A1+ to the A1 notes; AAA to the A2 through A4 notes; and AA, A and BBB to classes B, C and D notes, respectively.

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