Santander AG Planning €1.5B Revolving Auto Loan ABS

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Standard & Poor’s has assigned a preliminary ‘A’ rating to a €1.5 billion four-year revolving securitization of auto, motorcycle and trailer loans originated by Santander Consumer Bank AG.

SC Germany Auto 2016-2 UG (haftungsbeschraenkt) i.G. consists of a single class of rated Class A notes sized at €1.444 billion and an unrated Class B notes structure totaling €60 million.

The transaction includes a four-year revolving period in which additional assets could be introduced into the pool. The revolving structure is similar to SC Germany’s 2014-2 transaction totaling €3 billion, which also received an ‘A’ structured finance rating.

SC Germany’s more recent transactions, including May’s issuance of €600 million in auto loans receivables notes, have been triple-A rated by S&P and Moody’s Investors Service, benefitting static cash securitization structure of that deal.

S&P states the loans in the portfolio have an average principal balance of €11,413, a weighted average seasoning of 11.18 months and an average APR of 4.1%.

This is the 16th true-sale auto loan securitization by Santander’s indirectly owned German subsidiary, which is the largest non-captive auto loan provider in the country and, according to S&P, a main competitor to special banks, savings banks and captives.

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