Ford Motor Credit Co. is in the market with Ford Credit Master Owner Trust 2012-1 (FCMOT 2012-1). This deal is backed by dealer floorplan loans sponsored by Ford Credit.
Moody's Investors Service has assigned preliminary ratings of 'Aaa (sf)' to the deal's Class A; 'Aa1 (sf)' to Class B; 'Aa3 (sf)' to Class C; and 'A3 (sf)' to Class D.
Barclays Capital, Citigroup Global Markets and Deutsche Bank Securities are underwriters on the transaction.
According to a Moody's presale report, the quality of the floorplan receivables was considered based upon a number of characteristics. One of the main considerations is the manufacturers' strength aside from looking at the vehicles that the dealerships and the receivables have exposure to, the rating agency stated.
Moody's also examined the size of Ford's dealership base, the dealer risk rating distribution based on the firm's proprietary risk rating model, the age distribution of the receivables, and the overall trust monthly payment rate. Vehicle values under stressed historical scenarios were also considered in the agency's analysis.
Aside from Ford, CarMax is reportedly marketing its $750 auto ABS expected to price either tomorrow or Wednesday, according to a Bloomberg report. JPMorgan Securities, Barclays, and Bank of America Merrill Lynch are the lead managers on the offering.
Meanwhile, the Class A co-managers are Royal Bank of Canada, Royal Bank of Scotland, and Scotia Capital, Bloomberg reported.