Hyundai is planning to issue $1.325 billion of securities backed by prime auto loans, according to a presale report published by Standard & Poor’s.

J.P. Morgan Securities, BNP Paribas Securities, HSBC Securities, and RBC Capital Markets are the underwriters.

S&P has assigned preliminary ‘AAA’ ratings to four classes of senior notes that benefit from credit support of approximately 10.8%.

The series 2014-B securitization is HCA's second auto loan transaction this year. The series 2014-A securitization closed in February. "Overall, we believe the collateral pool's credit quality is slightly worse than the series 2014-A pool," S&P said. "Our loss range of 1.4%-1.6% remains consistent with series 2014-A, however, we are now at the higher end of the range."

Among the changes in quality from the first deal of the year, the percentage of Kia vehicles in the pool increased to 38.5% from 37.8%, the average original amount financed increased to $20,791 from $20,512, the weighted average seasoning or age increased to approximately 5.8 months from approximately 4.6 months, the percentage of loans by loan balance with 61- to 72-month terms increased to approximately 53.2% from 52.7%, and the percentage of new vehicles decreased to 94.6% from 95.0%.

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