Ally Bank is readying $1.679 billion of bonds backed by prime auto loans.

Standard & Poor’s has assigned preliminary ‘AAA’ ratings to three classes of fixed-rate notes to be issued by the transaction, Ally Auto Receivables Trust 2014-1 (AART 2014-1):  $518 million of class A-2 notes maturing in February 2017, $518 million of class A-3 notes maturing in October 2018,  and $126.6 million of class A-4 notes maturing in April 2019.

S&P also assigned a preliminary ‘AA+’ rating to the $46.2 million class B notes, ‘AA’ to the $33.6 million class C notes and ‘AA-‘ to the $24.3 million class D notes.

Credit Suisse is the lead underwriter.

AART 2014-1 is the 22nd prime auto loan securitization Ally Bank has completed under the AART platform and the second this year.   The collateral pool backing the latest deal is similar to Ally Bank’s previous deals, consisting of prime fixed-rate retail vehicle installment sales contracts secured by both old and new vehicles.

Compare with Ally’s previous transaction, AART 2014-A, completed in May, the weighted average FICO score increased slightly, to 745.8 from 744.4; the weighted average loan-to-value ratio decreased to 95.8 from 96.4; the percentage of loans with original maturities of 61-75 months decreased to 63.6% from 65.0%; the percentage of loans with original maturities of 73-75 months increased slightly, to 10.1% from 9.9%; and the percentage of used vehicle loans increased to 26.0% from 24.8%; and

Also, the percentage of subvened loans, or loans that Ally Bank originated or acquired under special incentive-rate financing programs, decreased to 24.8% from 30.2%.

The structure of Ally’s latest transaction has also changed slightly compared with the previous deal: subordination for the class A notes increased to 6.20% from 6.00% and increased to 3.45% from 3.00% for the class B notes.  Class C notes increased from 1.45% from 1.00%.

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