Ally Credit Canada Ltd is marketing a new Canadian Auto securitization deal, Canadian Capital Auto Receivables Asset Trust II (CCARAT II), Series 2011-2.
Moody's Investors Service has assigned the class A-1, A-2 and A-3 notes of the deal a provisional rating of 'Aaa'. The class B and C notes also rated by Moody's have been assigned a provisional rating of 'Aa3' and 'A2' respectively.
All classes of notes are enhanced by 1.75% overcollateralization, a 1.0% cash reserve account and the minimum 2.0% in excess spread. The class A notes are further enhanced by subordinate class B and class C notes.
Ally Credit Canada Limited has issued 10 previous publicly registered retail loan transactions and has securitization experience that dates back to 1993 in Canada. This transaction is Ally Credit Canada's second public retail loan ABS issuance of the year.
According to Moody's. the most notable difference between the two CCARAT transactions in 2011 (Series 2011-1 and 2011-2) and previous CCARAT II series is the higher percentage of contracts with original terms greater than 60 months (38% in this Series 2011-2 compared to 22% for Series 2010-1).
"A higher percentage of contracts with original terms greater than 60 months typically has a negative impact on pool performance," explained Moody's in a presale report. "Nonetheless, a weighted average FICO score of 763 for the Series 2011-2 securitized pool is indicative of a prime quality obligor base."