Hyundai Capital America is preparing to sponsor the $1.4 billion securitization of revenue from prime quality auto leases, through the Hyundai Auto Lease Securitization Trust, 2025-A. The deal can be upsized to $1.7 billion.
The HALST 2025-A pool has a statistical securitization discount rate of 9.60% both securitization scenarios, which is lower than the securitization discount rate on the HALST 2024-C transaction, which was 9.85%, according to S&P Global Ratings. The A-1, A-2, A-3 and A4 notes benefit from a credit enhancement level of 23.62% of the pool balance, while the class B tranche benefits from 19.30% in credit enhancement, the rating agency said.
HALST 2025-A will sell the notes through the five tranches and repay investors following a senior-subordinate structure. The class A notes benefit from 4.75% in subordination; 11.75% in non-amortizing overcollateralization, and that will grow to a target of 14.25% of the initial securitization value. There is also a non-declining reserve account equaling 0.50%, the rating agency said.
S&P expects to assign A1+ to the A1 tranche; AAA to the A2 through A4 tranches; and AA- to the class B notes.
The collateral pool, composed of 53,557 vehicles, broken down to 51% and 42%, respectively. The pool already looked strong, with a weighted average (WA) FICO score of 777. Otherwise, the pool had a lower concentration of leases with an original term of 43-48 months, 10.75%, compared with 16.35% on the HALST 2-24-C deal. The Genesis model represented 7.30% of the pool, up from 6.07% on the HALST 2024-C transaction, S&P said.
Crossover utility vehicles account for a large portion of the pool's vehicle types, at 79.62%, according to the rating agency. In terms of the collateral leases' geographic distribution, the breakdown by state is even among Florida (14.84%), New York (14.64%), California (13.29%) and New Jersey (9.75%).
