Ally Bank is planning a $1.25 billion prime auto loan securitization, according to a presale report by Fitch Ratings.
Deutsche Bank is the lead underwriter.
Ally Auto Receivables Trust (AART) 2013-1 includes a $280 million money market tranche, unrated by Fitch; and three tranches provisionally rated ‘AAA’: $377 million of notes due Oct. 15, 2015, $377 million of notes due May 2017, and $147.32 million of notes due February 2018.
The notes are backed by new and used automobile and light-truck loans originated and acquired by Ally from General Motors and Chrysler Group dealers.
Fitch said the collateral for the pool is “slightly weaker” than recent Ally prime auto loan transactions, with a slightly lower borrower fico scored and credit-tier distributions. The pool also has the highest concentration to date of loans with terms longer than 61 months, more used vehicles, and a higher loan-to-value ratio and truck concentration. On the plus side, the loans are geographically diverse