Ally Financial is marketing $1 billion of non-prime auto loan securities via its Capital Auto Receivables Asset Trust.
The 2015-2 transaction is the second to be issued from the trust this year. The securitization pools non-prime loans, which fall below prime but are considered better credits than subprime. The loans finance new and used car loans underwritten by General Motors dealer, Chrysler Group dealers and other non-GM dealers.
Barclays is lead underwriter.
Fitch Ratings has assigned preliminary AAA’ ratings to $868.32 million of class A notes issued over four tranches with varying maturity dates, The notes benefit from credit enhancement of 19.5%. The class A1 notes are due November 2017, the class A2 notes are due September 2018, the class A-3 notes are due September 2019 and the class A4 notes are January 2020.
At the junior level, Fitch has assigned AA’ ratings to $50.9 million of class B notes due May 2020 that benefit from credit enhancement of 14.75%, A’ ratings to $48 million of class C notes due August 2020, BBB’ ratings to $42.8 million of class D note due December 2022 with credit enhancement at 6.25% and BB-’ ratings to$53.6 million of class E notes due January 2024 that benefit from credit enhancement of 1.25%
The 2015-2 pool has a 633 weighted average (WA) FICO score, 8.76% WA annual percentage rate and 104% WA loan-to- value (LTV) ratio. Of the pool, 60% consists of new vehicle contracts, while extended-term contracts total 77.0%, all relatively consistent with recent securitized pools, according to Fitch.