Ford Motor Credit Co. is planning a $1.6 billion securitization of new and used automobile, light-truck and utility-vehicle retail contracts, according to a presale report published by Fitch Ratings.
The deal, Ford Credit Auto Owner Trust 2014-B, is the second from the program this year. It will consist of seven tranches of notes. The $394.1 million class A-1 notes maturing in July 2015 were assigned a preliminary F1’ rating. Three tranches of class A notes received AAA’ preliminary ratings: the $538.7 million A-2 notes with a final maturity of March 2017, the $464.5 million A-3 notes maturing in October 2018, and the $102.4 million A-4 notes that reach final maturity in August 2018.
The lead underwriters for the deal are Morgan Stanley, Barclays, and RBC Capital Markets.
Seasoning for the deal is 11 months, the highest since FCAOT 2008-A and four months more than the previous deal, FCAOT 2014-A, according to the presale report. The weighted average FICO score is 726, consistent with the prior two transactions from Ford.
Among other differences, 2014-B has a lower composition of trucks and SUVs, and a marginally higher concentration of new vehicle contracts compared with the previous deal, which was not rated by Fitch.
Ford Credit has relied heavily on securitizations as a funding with FCAOT transactions dating back to 2005.