Income from auto dealer floorplan loans that Ford Motor Credit originated will secure $986.8 million in asset-backed securities (ABS), issued to investors through the Ford Credit Floorplan Master Owner Trust, series 2025-2.
The deal will issue the ABS through five tranches of class A, B, C and D fixed-rate notes, all of which have a legal final maturity date of Sept. 15, 2030, according to Moody's Ratings.
Ford Credit Floorplan pays a fixed rate to ABS investors, while the dealers' assets pay a rate pegged to the flexible prime rate, so there is the potential of eroding excess spread.
The class A notes benefit from total hard credit enhancements that equal 24.44% of the balance of the A notes.
Almost three thousand accounts are in the collateral pool, a level of granularity that Moody's says is a positive credit characteristic. When accounts with a zero-dollar balance are excluded, they pool has an average balance of $7 million, and a weighted average (WA) rate of 1.04% over the prime rate, Moody's said.
Classes B, C and D benefit from initial hard credit enhancements of 19.9%, 15.95 and 12.9%, respectively.
Moody's assigns Aaa to the A1 and A2 notes; and Aa1, Aa3 and A1 to classes B, C and D, respectively.
Coupons include 4.06% on the class A1 notes and 4.33% on the class B notes, according to Asset Securitization Report's deal database, meanwhile the notes were priced against two benchmarks. Primarily, they are pegged to the one-month I-Curve and the A2 tranche is priced off the one-month Secured Overnight Financing Rate (SOFR).
The notes derive credit enhancement from subordination equal to 12.50% of the pool balance, a fully funded reserve fund with a balance representing 0.44% of the pool balance, and excess spread. The deal derives liquidity from a cash reserve, Moody's said.
