Another in a recent string of auto lease securitizations—that can be upsized—is on the way, this time from Hyundai Auto Lease Securitization Trust. The series 2024-C notes will raise $1 billion, with a potential to raise up to $1.3 billion.
Hyundai Capital America originated the pool of collateral leases, to finance vehicles manufactured by Hyundai Motor America, Kia America and Genesis Motor America, according to ratings analysts at Fitch Ratings. Prime quality leases make up the collateral pool, with a weighted average FICO score of 776. That falls in line with the most recent 2024-B series, and is a couple of ticks higher than 774 seen on the 2024-A.
The concentration of electric vehicles also reached 17.8%, an increase from 15.3% in the 2024-B deal. Also the undiscounted base residual value on the deal is 72.0%, as a percentage of the securitization value, Fitch analysts said. These attributes contribute to the pool being considered strong and stable.
Known as HALST 2024-C, the deal will issue notes through six tranches of classes A and B notes. Asset Securitization Report's deal database says yields on the notes rated A1+/F1+, by S&P Global Ratings and Fitch, respectively—which are expected to price at par—are expected to be 5.3%. Otherwise, yields will range from 4.8% to 5.0% on the notes rates AAA to AA, the database said.
BNP Paribas is the structuring lead manager on the deal, Fitch said. Meanwhile, the database points out that Credit Agricole Securities, J.P.Morgan Securities Lloyds TSB and Mizuho Securities are also on the deal as managers.
There are 40,696 leases in the collateral pool, according to Fitch analysts. Crossover utility vehicles (CUV) and sport utility vehicles (SUV) make up a vast majority of the pool, 78.6%, while cars and vans make up 19.6% and 1.8% of the pool, respectively. While the vehicle type is heavily skewed on one direction, the pool is well diversified by model, Fitch said. Tucson, the top model, represents 12.3% of the pool, and the top five model concentrations account for 47.2%, the rating agency said.
Fitch assigns ratings of AAA to the A2 through A4 notes and AA to the B notes, while S&P also assigns AAA to the A2 through A4 notes; and AA to the B tranche.
