General Motors is marketing its second offering of the year of bonds backed by auto leases.

The $1.1 billion GM Financial Automobile Leasing Trust 2016-2 will issue a money market tranche and three tranches with preliminary ‘AAA’ ratings from Fitch Ratings. All benefit from 18.4% credit enhancement.

Fitch also assigned ratings to three subordinate tranches ranging from ‘AA’ to ‘BBB.’

The notes will be backed by a pool of retail closed-end vehicle leases made to predominately prime obligors. The leases finance new GM-affiliated brand vehicles acquired by GM Financial directly from dealers.

According to Fitch, the collateral for the transaction a strong weighted average FICO score of 751 (excluding obligors with no credit score), a relatively diverse mix of vehicles and a higher concentration of shorter term contracts compared to prior deals. The leases are seasoned by 4.85 months, on average, and have weighted average remaining terms of 30.97 months.

Nearly half of leases (46.71%) finance crossover utility vehicles, another 23.18% finance cars, and the remaining 20.77% finance trucks.

The rating agency expects losses for the deal will reach for GMALT 2016-2 is 1.15%, in its base case scenario. That’s lower than the 1.50% it targeting for GM’s pervious lease securitization, reflecting the improved credit quality of the pool and stable credit loss performance to date.

However, the presale report includes Fitch’s now standard warning that prices of used cars, which have been strong in recent years, could weaken, which will result in smaller proceeds from the sale of cars when they come off lease.

Deutsche Bank Securities, BNP Paribas, Mizuho Securities, and Societe Generale are the underwriters.

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