The auto sector remains the most active part of the ABS market with three transactions boosting the pike. Hyundai Capital America (HCA) and Ally Bank are both in the market with their respective deals.
And as reported yesterday by StructuredFinanceNews.com, Santander is also in the market with an auto ABS deal worth $700.5 million.
Moody's Investors Service assigned provisional ratings to the notes issued by Hyundai Auto Receivables Trust 2010-B. The top tranchess of the $1.17 billion, four-tranche deal carries triple-A ratings.
Lead managers on Hyundai's ABS are Bank of America Merrill Lynch, Barclays Capital and Societe Generale Corporate & Investment Banking.
Co-managers are HSBC Securities, RBC Capital Markets and RBS Securities.
It is backed by prime-quality retail installment auto loan contracts originated by HCA, according to a presale report by Moody's.
HCA has issued thirteen transactions — eleven of them are public transactions — since 2001. This transaction is the firm's second public retail issuance of the year. The transaction is structured as an amortizing owner trust, which allows for a variety of maturities suited to the needs of investors.
In its release on the securitization, Moody's said that it rated the deal based on the collateral, credit enhancement, the legal structure and the experience of Hyundai Credit America
(HCA) as servicer.
Meanwhile, Ally Bank is also in the market with a $772.2 million dealer floorplan ABS. The five-part offering is lead managed by Citigroup Global Markets, Deutsche Bank Securities and JPMorgan Securities.
In explaining its rationale for rating Ally's offering, Moody's cited its available enhancement, high overall credit quality of the auto dealer floorplan receivables and the underlying collateral securing the floorplan loans.
The rating agency also mentioned the diversified pool of dealers, which lessens the risks caused by potential delays due to automatic stay in the event of the dealer’s bankruptcy or the losses sustained from any sold-out-of-trust (SOT) situation.
There were also the concentration limits that maintain dealer diversification: 4% for dealers affiliated with AutoNation and 2% for all other dealers.
For further preliminary details on the deals, please click link below from the ASR Scorecard database.