Leases on a fleet of new Nissan and Infiniti vehicles will secure $1.2 million in asset-backed securities (ABS) through the Nissan Auto Lease Trust, 2022-A, transaction. The deal has a larger reserve account compared and an increase base residual value as a percentage of securitization, compared with the most recent deal.
The reserve account on 2022-A will be initially 0.4% of the initial aggregate securitization value, which will build to a target of 0.65%, and then decrease to 0.50% after the class A-2 is paid off, according to S&P Global Ratings. On series 2021-A, the reserve account was 0.25% of the initial aggregate securitization value and a target of 0.50%.
In another change from the program’s previous deal, Nissan Auto Lease Trust, 2022-A’s base residual value—as a percentage of securitization value—had increased to 72.3%, up from 71.6%. On average the base residual value increased to $18.1 million, according to S&P.
Nissan Motor Acceptance is the sponsor, servicer and administrator on the deal, which is slated to close around the end of June, S&P said. Notes, most of which will be fixed, will be issued through four senior classes, class A-1, A-2a/A2b, A-3 and A-4. The class A-2 notes might be composed of a fixed portion, class A-2a and a floating-rate class A-2b.
S&P expects to assign a rating of A-1+ to the class A-1 notes, while the rest of the classes of notes should be assigned ‘AAA’ ratings.
The notes that Nissan Auto Lease Trust, 2022-A, will have initial overcollateralization of 22.5%, a 0.4% non-amortizing reserve account that builds to a target of 0.65%, before leveling down to 0.50% after the class A-2 notes pay off, plus excess spread. The notes will have an overall availability of about 26.3%.
The underlying collateral pool consists of 48,416 prime auto lease receivables that have a weighted average FICO score of 762.
On a weighted average (WA) basis, the lease terms have an original term of 37 months, and a remaining term of 25 months. Leases that had terms that were equal to or less than 36 months make up 76.4% of the pool. While Nissan and Infinity models make up the entire collateral pool, the vast majority, 83.1% are Nissans, while Infinity comprise the rest.
