Revenue from auto dealer floorplan receivables will secure $920.2 million in class A notes from the Nissan Master Owner Trust Receivables, both series 2024-A and 2024-B, according to Moody's Investors Service.
Various Nissan entities have key roles on the deal, as Nissan Motor Acceptance is sponsor, servicer and administrator, and Nissan Wholesale Receivables is depositor, according to Fitch Ratings.
Both transactions will issue just one, Aaa rated class of notes, according to the rating agency, with 2024-A issuing the much smaller amount, $306.7 million, and 2024-B issuing $613.5 million, according Moody's ratings analysts. Both series of notes benefit from 18.91% in initial hard credit enhancements. Some of that support also involves a cash reserve account representing 0.41% of each deal's total pool balance, Moody's said.
Fitch Ratings, for its part, estimates that both series of notes will issue an amount ranging from $750 million to $ 1 million, and assigns ratings of AAA to the class A notes on both series, according to ratings analysts. Fitch says the level of hard credit enhancement, 18.91% is consistent with the last two series of notes and counts as a credit positive, providing adequate loss coverage over Fitch's own base-case loss assumptions.
In any case, Nissan has a strong and stable monthly payment rates, particularly over the last three years, according to Fitch, and it covers a period that roughly corresponds with the timing of last two series of notes.
Some 1,892 accounts underpin the contracts, according to Fitch, adding that on average they have $1.3 billion in principal outstanding.
The assets have mixed interest rate exposures, with virtually all of the underlying loans, 92%, paying interest over the prime rate, and the remaining 8% paying at a spread over the Secured Overnight Financing Rate (SOFR).
The two separate issuances differ in terms of legal final maturities, though, with Feb. 15, 2028 for the 2024-A notes, and one year later—Feb. 15, 2029—on the 2024-B notes, Moody's said.
