Ford Credit Canada completed securitizing nearly $600 million of auto loans in the company’s first public retail securitization, the firm announced today.

The transaction is not part of the government’s $12 billion Canadian Secured Credit Facility.

For accounting purposes, the trust will be consolidated with Ford Canada, resulting in both the pool of retail contracts and the indebtedness incurred by the trust with respect to the series of ABS notes reflecting on the consolidated financial statements of Ford Canada.

Ford Canada said it will use the immediately available proceeds to repay debts owed to Ford Credit International.

Details on Ford Canada’s auto ABS transaction is available via the link below from the ASR Scorecard database.

Meanwhile, according to the Financial Post, experts said hope for auto lending lies in the revival of the securitization, thus highlighting Ford Canada’s securitization as a positive development for the sector.

Canadian auto sales climbed to an annualized level of 1.42 million units in recent months, up from 1.37 million in the first quarter, according to Scotia Capital’s Global Auto Report.

Meanwhile, thanks to lending from programs such as the Term ABS Loan Facility, U.S. sales jumped to an annualized rate of 9.9 million in May, up from 9.4 million so far this year, according to a news report.

Still, auto industry experts said despite signs of improvement, sales remain difficult. Canadian Automobile Dealers Association Chief Economist Michael Hatch said credit is still hard to come by, and although things are generally on the rise, it still depends on the dealer’s willingness to make loans.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.