Milan-based Agos Ducato plans to issue securities backed by a €1.5 billion ($1.8 billion) portfolio of unsecured Italian consumer loan receivables, according to DBRS.

The deal dubbed Sunrise, Series 2014-2, is backed by loans that were underwritten to retail clients and originated and serviced by Agos.  

The issuer is a leading consumer credit lender in Italy with an 11% market share. It is jointly owner by Crédit Agricole, which owns 61%, and Banco Popolare Group (39%).

DBRS plans to assign a ‘AAA’ ratings to the class A1 and A2 notes that have credit enhancement at 44.38%, and ‘A’ ratings to the class M notes with credit enhancement at 23.51%.  

New and used auto loans and personal loans originated by the issuer make up the bulk of the pool. The loans have a weighted average original term of 4.45 years and have weighted average seasoning of 8 months.

The current pool of receivables is comprised of 76% of flexible Loans, which allow the borrower to either skip a monthly installment (one installment per year for up to five times over the life of the loan, with the skipped installment to be postponed to the end of the original amortization plan), or modify the amount of the monthly installments.

The transaction is subject to a six-month revolving period. During this period Agos Ducato can purchase additional assets.  

In May, the sponsor sold €1.3 billion of securities backed by auto and personal loans. The notes were rated ‘AAA’ by DBRS at with slightly less credit enhancement at 41.33%.

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