E-commerce car seller and financer Carvana's latest securitization will raise $1 billion from the capital markets, the first series to include new vehicles, and the percentage or new loans is 2.65%.
Carvana Auto Receivables Trust, 2026-P1 is also the platform's largest transaction in six months and one with higher concentrations of extended-term loans, S&P Global Ratings said.
On a weighted average (WA) basis, the CRVNA 2026-P1 pool has an original term of 74.5 months, compared with 73.8 months on the series 2025-P4. Loans with original terms of 73-75 months, made up 58.36% of the pool, up from 58.09%, S&P said.
The notes benefit from more initial hard credit enhancement levels of 11.2% and 7.1% on the classes A and B, respectively, according to S&P Global Ratings, up from 10.7% and 6.75%, respectively.
Subordinaton on the notes also increased on the class A and B notes, to 10.70% and 6.60%, respectively, up from 10.20% and 6.25%, S&P said.
Further, the Carvana program has shown performance improvement in recent vintages compared with the worst-performing transactions after the pandemic, starting with the 2021-P3 deal, according to analysts at Fitch Ratings.
Carvana Auto Receivables Trust, 2026-P1, will issue notes through seven tranches of classes A, B, C and D, according to Fitch.
BNP Paribas is the lead arranger, and several institutions join as manager, including Barclays, Citigroup Global Markets and Deutsche Bank Securities.
There are 39,517 loans in the pool, with an average principal balance of $26,589, S&P said. On a weighted average (WA) basis, the pool has a loan-to-value (LTV) ratio of 97.89%, and borrowers have a 713 non-zero WA original FICO score, analysts said.
CRVNA 2026-P1 has final maturity dates ranging from March 10, 2027 on the F1+ on the A1 notes to July 12, 2032 on the AAA, A4 tranche and the AA-rated class B notes, according to Fitch.
Classes C and D, rated A and BBB, are slated to mature on Aug. 10, 2032 and March 10, 2034, Fitch said.
S&P expects to assign ratings of A1+ to the A1 notes; AAA to the A2 through A4 notes; AA to the class B notes; A to the class C notes; BBB to the class D notes and BB- to the N tranche.
