A diverse pool of vehicles from Avis will collateralize $568.2 million in asset-backed securities (ABS) coming to market through the Avis Budget Rental Car Funding.
The series 2026-1 and 2026-2 have several structural similarities. Each will issue four tranches of class A, B, C and D, notes according to analysts at Fitch Ratings. Both series will issue the same amount of notes through each tranche, with the class A note issuing the largest amount, $207.4 million, the rating agency said.
Barclays Capital is the structuring lead on the deal, according to the rating agency.
Notes from Series 2026-1 and series 2026-2 have legal final maturity dates of August 2030 and August 2032, respectively. Also, they benefit from credit enhancement levels ranging from a minimum of 31.4% on the class A notes to 4.9% on the class D notes, Fitch said.
Letters of credit sized to cover interest payments for six months, plus a cushion, help provide credit support to the notes. Other characteristics, including dynamic overcollateralization, will shift according to the fleet mix, providing credit stress relief.
On average, the rental fleet is 12.7 months old, younger in comparison to the vehicles in previous securitized pools. Also, the transaction implemented concentration limits are in place for the original equipment manufacturers (OEMs), to mitigate the risk of overexposure to just one car maker, according to Fitch.
Chrysler, GM, Ford, Toyota and Kia account for most manufacturers in the pool, 71.5%, according to Fitch.
Lessees in the pool are diverse, too, including Avis, Budget, Zipcar ,Payless and Budget Truck, the rating agency said.
In both pools, Fitch assigns AAA, A, and BBB to classes A, B and C. Asset Securitization Report's deal database notes that Moody's assigns Aaa, Aa2, Baa3 and Ba2 to classes A, B, C and D, respectively.
