Santander Consumer USA is in the market with a $526.3 million auto receivable deal named Santander Consumer Acquired Receivables Trust 2011-S1 (SCART 2011-S1) managed by Citigroup Global Markets.
The collateral consists of an equity interest in CitiFinancial Auto Issuance Trust 2009-1 (CFAIT 2009-1), which is the underlying issuing entity, and the funds on deposit in the CFAIT 2009-1 reserve account.
In a presale report on the four-tranche transaction, Standard & Poor's said that its preliminary ratings on this 144A securitization reflects the credit support for its class A notes.
S&P said that although this support covers a stress scenario that is more severe than a 'AA' scenario, the rating agency gave a preliminary 'AA (sf)' rating. This is because the deal has no liquidation voting rights upon an event of default in the underlying transaction CFAIT 2009-1, which is rated 'AAA (sf)'.
S&P said that if there is a non-monetary event of default, the underlying pool can be sold with the approval of 100% of the CFAIT noteholders if such proceeds are enough to retire the CFAIT notes.
In other 144A deal news and as reported by StructuredFinanceNews.com yesterday (see story
For preliminary details on both deals, please see the link below from the ASR Scorecards database.
