BNP Paribas Personal Finance is marketing a French consumer-loan securitization for the first time in two and a half years, according to a presale report from Moody’s Investors Service.

Noria 2018-1 is a €1.6 billion securitization of unsecured personal loans, of which 30% are debt consolidation accounts. The loans are originated from multiple channels, including direct mail, online and branches, and are serviced by the BNP Paribas affiliate.

Moody’s has issued a preliminary Aaa rating on the €1.26 billion Class A notes, with have total credit enhancement of 24% based on the subordination of six junior classes of notes. Moody’s assigned the same rating to the previous Noria shelf securitization, completed in November 2015. That tranche had lower CE of 21.5%.

Moody’s expects defaults to reach 6.5% of 180,608 contracts to default over the life of the transaction, with a 30% of the balance of those loans being recovered. Moody’s said the triple-A rating withstood stress default modeling of losses up to 6.75% and recovery rates as low as 25%.

The weighted average life of the portfolio is 2.4 years, and the weighted average interest rate is 4.9%. None of the loans were delinquent as of the March 31 cutoff date.

The transaction’s one-year revolving period will allow eligible loans to be added to the collateral pool. Moody’s noted that loan additions could boost the percentage of higher-risk debt consolidation loans to 40%.

The Class A notes will be sold with a fixed-rate coupon to match up with the fixed-rate collateral, but the Class B, C, D, E, F and G notes with balances equal to 24% of the collateral will pay floating-rate notes tagged to one-month Euribor. BNP Paribas Personal Finance (with an Aa3 corporate rating from Moody’s) has entered into two interest-rate swap agreements for the subordinate notes.

BNP Paribas Personal Finance has more than 27 million active European customers.

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