Santander AG Issuing €600M German Auto ABS

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Santander Consumer Bank AG has collected €600 million worth of auto loan contracts for its first German loan securitization of the year, and seventh overall.

Moody’s Investors Service has assigned a provisional ‘Aaa’ rating to the class of €556.5 million Class A floating rate notes. None has been assigned to the €43.5 million Class B stack.

The loans are from contracts originated by Santander Consumer Bank AG. The pool consists of 59,714 contracts with an average seasoning of 11 months. Most of the loans (60%) are for used vehicles, predominantly European models such as Audi, BMW, Mercedes, Volkswagen, Opel and Renault.

Moody’s point to credit strengths such as the 1.9% excess spread to repay the Class A and B notes as well as an amortizing cash reserve of 1%.

The portfolio credit enhancement of 7.5% is lower than the average Europe/Middle East/Asia ABS transaction rated by Moody’s, the ratings agency report.

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