Nissan Motor Acceptance Corp. (NMAC) is motoring into the primary market with a $1 billion deal backed by prime auto loans, according to a presale report by Fitch Ratings.

The auto manufacturer’s second deal of the year has five traches. Three are triple-A, a short duration piece is ‘F1+sf’, and a fifth chunk for $41.7 million carries no rating and provides subordination to the other four. All the rated tranches have an initial credit enhancement of 4.25%.

JP Morgan Securities is leading the transaction.

Collateral consists of loans used for the purchase of new and used cars and light-duty trucks made by Nissan Motor Co. and originated and serviced by NMAC.

For the first time in a Nissan auto loan pool, a significant portion — nearly half at 48.6% — have maturities at or beyond 61 months. But Fitch suggested that this risk is mitigated with the high credit quality that has always been sustained in Nissan prime pools: a weighted average FICO of borrowers of 758; ample geographic diversity; and a share of new vehicles that is over 95%.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.