CarMax is planning an $800 million securitization of used auto loans, according to a presale report issued today by Fitch Ratings.
Barclays is the lead underwriter.
The deal, CarMax Auto Owner Trust (CAOT) 2013-2, is primarily backed by car and light truck/SUV loans originated and serviced by CarMax Auto Finance, a captive finance company.
Fitch has assigned a preliminary ‘AAA’ rating to three classes of notes; a $266 million of notes due in June 2016; $248 million of notes due in January 2018 and $125.4 million of notes due in December 2018.
The rating agency said the deal’s credit quality is slightly stronger than that of pools CarMax has securitized since 2011, with a higher weighted average Fair Isaac Corp. (FICO) score (697) and a stronger distribution of internal credit tiers. However, there is a higher portion of loans with extended terms (61.6%) compared with the 2007-2012 pools.
