Ford Motor Credit’s Canadian subsidiary is shopping $538 million of notes backed by auto loans, according to a presale report published today by Moody’s Investors Service.

The deal, Ford Auto Securitization Trust, Series 2013-R1 (FAST 2013-R1), is Ford Credit Canada’s first retail offering of the year.

It consist of five classes of fixed-rate notes; two classes of A notes are provisionally rated ‘Aaa’; a class of B notes is rated ‘Aa1’;  a class of C notes is rated ‘Aa2’; and a class of  D notes is rated ‘A1’.

All classes of notes are enhanced by a 1.0% cash reserve account as well as overcollateralization in the form of yield supplement overcollateralization. The class A notes are further enhanced by subordinate class B, class C, and class D Notes.

Moody’s notes in its presale report that 40% of the receivables have original terms greater than 60 months, a factor that typically has a negative impact on the performance of the pool of collateral. While 40% is high, relative to historical levels for such loans in the Canadian market, Moody’s said this level is consistent with other deals Ford Credit Canada has issued in the recent past.

The weighted average FICO score of the 2013-R1 is also consistent with those of Ford’s most recent prior transactions, 2012-R1 and 2012-R2.

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