A pool of receivables on prime auto loans will secure the Hyundai Auto Receivables Trust, 2023-A, selling some $1.2 billion in asset-backed securities to investors.
Most of the notes from the deal, know as HART 2023-A, will be fixed rate, according to a pre-sale report from S&P Global Ratings, and the structure features a couple of differences from previous deals.
For one, the yield supplement overcollateralization amount (YSOA) dropped to 10.11% as a percentage of the aggregate pool amount of $1.4 billion, compared with the 10.76% from the previous deal, HART 2022-C. Also, the HART 2023-A has an estimated per annum excess spread—pre-pricing—of 2.87%, compared with 2.50%, which could be upsized slightly.
HART 2023-A contains 67,981 loans, which have an average loan balance of $21,208. On a weighted average (WA) basis, the loans had original terms of 66.7 months, a remaining term of 49.9 months and an APR of 3.54%, according to S&P. The underlying auto loans have a FICO score of 768, again on a WA basis.
New vehicles represent virtually all of the pool, at 95.78%, the rating agency said. When broken down by the make of the cars, most of the receivables, 57.82%, are connected to Hyundai, and Kia accounts for 37.91%. S&P expects a lifetime cumulative net loss (CNL) of 1.35% on the transaction, slightly lower than the 1.40% CNL on the HART 2022-C deal, the rating agency said.
In terms of credit enhancement, the notes from classes A, B and C will be supported by 12.5%, 10.5% and 8.0% in hard credit enhancement and excess spread, the rating agency said.
S&P says it is prepared to issue ratings of A-1+ on the $263.4 million, A-1 notes; 'AAA' on the A-2 through A-4 notes; 'AA+' on the class B notes and 'AA' on the class C notes. Also, the legal final maturity dates range from April 15, 2024 through Feb. 15, 2030.
