Hyundai Capital America latest sponsored securitization of prime auto leases will raise $1.2 billion through the Hyundai Auto Lease Securitization Trust, series 2026-B.
The transaction will issue mostly notes through five tranches of classes A and B notes, which have legal final maturity dates ranging from April 15, 2027 on the A1 notes through Aug. 15, 2020 on the class B notes, according to analysts at Fitch Ratings and S&P Global Ratings.
Just one tranche, the A2B, could issue floating-rate notes during the course of the deal, the rating agencies said, and those would be benchmarked on the Secured Overnight Financing Rate (SOFR), the rating agencies said.
SG Americas Securities is the structuring lead manager on the deal, which is expected to close on April 22, 2026.
Tranches A2 and A3, rated AAA, contain the bulk of outstanding notes, with a base amount of $465.4 million. That amount could be upsized to $580.6 million, according to S&P.
Classes A1, A2, A3 and A4, benefit from total credit enhancement equaling $23.65% of the outstanding note balance, Fitch said. The class B notes, benefit from credit enhancement representing 19.13% of the note balance.
HALST 2026-B's deal structure, and credit supports, include 4.75% subordination for the class A notes; 11.75% in non-amortizing overcollateralization, which will grow to a target of 14.25% of the deal's initial securitization value, Fitch said.
The transaction also benefits from a non-amortizing reserve account representing 0.50% of the deal, plus excess spread, S&P said.
The transaction's collateral pool contains 45,321 leases, with an average securitization value of $30,003, S&P said. Also, the rating agency noted, the leases have an average base residual value of $22,491.
On a weighted average basis, the leases have an average original term of 36.13 months, S&P said.
Kia brand vehicles account for the largest portion of leases, 43.9%, by aggregate securitization value. Hyundai and Genesis brand vehicles account for 43.2% and 12.9%, respectively, Fitch said.
Recent securitizations have seen a shift toward sport-utility, crossover utility and electric vehicles, as well as higher concentrations of the Kia and Genesis brands, Fitch said.
The rating agency also noted that borrowers have a weighted average FICO score of 775, down slightly from 776 seen in the 2026-A series and 778 in the 2025-C series.
