Hyundai Motor Co. is planning a $683.4 million securitization of closed-end vehicle leases secured by new vehicles manufactured by Hyundai and Kia Motor Co.

Fitch Ratings has assigned preliminary ratings to five tranches of notes for the transaction, Hyundai Auto Lease Securitization Trust (HALST) 2014-B. The $127.3 million class A-1 notes, maturing in July 2015, were preliminarily rated ‘F1.’  Three other tranches have all been assigned ‘AAA’ preliminary ratings; $227 million of class A-2 and $227 million of A-3 notes maturing in February and November 2017 respectively, and $75 million of class A-4 notes maturing in September 2018.

Fitch also expects to rate $27.1 million of class B notes maturing in December 2018 ‘AA.’

Bank of America Merrill Lynch is the structuring lead manager.

Hyundai Capital America has issued five prior auto lease securitizations since 2011, the most recent being the $672 million deal from March.  Seasoning for HALST 2014-B is nine months, two months less than HALST 2014-A’s 11 months.  Compared with the earlier deal, the FICO score has slightly decreased from 748 to 741.

Hyundai Motor Company, a South Korean multinational automaker, is headquartered in Seoul and was incorporated in 1967.

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