© 2024 Arizent. All rights reserved.

CPS Marketing $250M of Subprime Auto Loan ABS

Consumer Portfolio Services is prepping its second subprime auto loan securitization of the year, according to a presale report published by Standard & Poor’s.

The $250 million CPS Auto Receivables Trust 2015-B will issue five classes of fixed-rate notes. S&P assigned a preliminary ‘AA-‘to the $166.87 million class A senior notes with a weighted average life (WAL) of 1.22 years; an ‘A’ rating to the $32.5 million class B notes with a WAL of 2.93 years; and a ‘BBB’ rating to the $32.5 million class C notes with a WAL of 3.68 years. The $10 million class D notes and $8.13 million class E notes both have a WAL of 4.08 years and received below investment grade ratings at ‘BB’ and ‘B,’ respectively.

Citigroup is the lead underwriter on the deal.

In its presale report, S&P cites the availability of 45.9%, 38.1%, 29%, 26.3%, and $24.3% of credit support for the class A, B, C, D, and E notes, respectively, as a factor that influenced the ratings. S&P also attributes the preliminary ratings to the timely interest and principal payments made to the notes under its stressed cash flow models, expecting that the class A notes will not decline by more than one category during the first year under a moderate stress scenario of 1.625x its expected net loss level.

The transaction is CPS’ 17th senior subordinate securitization since the beginning of 2011. 

For reprint and licensing requests for this article, click here.
MORE FROM ASSET SECURITIZATION REPORT