Honda Motors is in the market with its second auto loan securitization of the year, according to a presale report published today by Fitch Ratings.
The $1.02 billion by Honda Auto Receivables 2013-2 Owner Trust (HAROT 2013-2) is backed by new and used Honda and Acura automobiles, light trucks and utility vehicle loans originated and serviced by captive finance subsidiary AHFC.
Credit Suisse is the lead underwriter.
The deal includes a $283 million money market tranche and four tranches with preliminary ‘AAA’ ratings from Fitch: a $313 million tranche with a final maturity of October 2015; a $294 million tranche with a final maturity of February 2017 and a $110 million tranche with a final maturity of June 2019.
Fitich said the credit quality of 2013-2 is consistent with 2013-1 and prior 2012 and 2011 pools, with similar borrower attributes, collateral attributes, concentrations of different types of vehicles, and loan attributes. However, Honda did not provide any information on the loan-to-value ratios of the leases.
Honda has been accessed the U.S. asset-backed market for funding since 1994 and produced fairly stable historical loss performance. The chart on the next page exhibits CNL for HAROT securitizations dating back to 2006. Transactions issued in 2009−2012 are exhibiting improved performance, with some of the lowest loss rates to date, similar to pre-recessionary levels, according to Fitch.