Ford Motor Co. plans to issue a $1.34 billion auto loan securitization that has been rated by Fitch Ratings.
The deal, Ford Credit Auto Owner Trust 2013-A, will issue three ‘AAA’ rated, class A tranches; one ‘BB’ rated class B tranche; one ‘A’ rated class C tranche; and one ‘BBB’ rated, class D tranche. Bank of America Merrill Lynch is lead manager in the deal.
The 2013-A pool is backed by new and used automobile, light truck, and utility vehicle retail contracts purchased by Ford Motor Credit Company LLC from dealers and serviced by the company.
According to the Fitch presale report the deal stacks up similarly to prior with a weighted average FICO score of 726 with 87.45% of new vehicles. The pool is geographically diverse with approximately seven months of seasoning, and consists of 40.86% of the retail contracts with terms more than 60 months.
The initial credit enhancement for all classes in 2013-A is 5.50%, similar to Ford’s 2012-D and 2012-C notes. However the credit enhancement falls 0.50% below the enhancement on Ford’s 2012-A notes. Excess spread is also lower for the 2013-A versus all prior series since 2008-A, according to Fitch.