Hyundai plans to issue a second round of securities backed by auto lease receivables this year. The $747.76 million transaction, called Hyundai Auto Lease Securitization Trust (HALST) 2015-B, will be rated by Fitch.
The trust will issue five tranches of senior notes, with a preliminary F1+’ rating on the $138 million class A1 money market notes. The $111 million class A2a notes, $111 million class A2b notes, $275 million class A3 notes, and $83.1 million class A4 notes all received an AAA’ rating.
Consistent with Hyundai’s previous transaction, HALST 2015-A, completed three months ago, all of the senior notes benefit from an initial credit enhancement (CE) of 16.45%, which is anticipated to grow to 18.95% of the initial securitization value.
The trust also offers $29.65 million class B notes with an AA’ rating that benefit from initial CE of 13.5%, that is expected to reach 15.5%.
The leases backing HALST 2015-B have a weighted-average FICO score of 741 and eight months of seasoning. The pool of mixed vehicle models has an undiscounted residual value of 63.07% of the SV.
Citi, Bank of America Merrill Lynch, and Credit Agricole are the lead banks.
In its presale report, Fitch cited the strong performance in the U.S. wholesale vehicle market in recent years. However, the agency anticipates that “increasing off-lease vehicle supply and pressure from increased production levels will lead to decreased residual realizations during the life of the transaction.” This means that the vehicles could be worth less than anticipated when they come off lease.
