Santander is marketing another $794.12 million subprime auto loan securitization.

S&P has assigned a preliminary ‘AAA’ to three tranches of senior notes to be issued by Santander Drive Auto Receivables Trust 2015-5; a fixed-rate tranche and a floating rate tranche totaling $225 million that mature in December 2018 and an $89.61 million fixed-rate tranche maturing in September 2019.

S&P noted some changes in the collateral SDART 2015-2, the last deal that it rated. Notably, the percentage of loans with an original term of 73-75 months increased to 15.20% from 8.28% and the internal custom score on these loans decreased to 530 from 549. "Lower custom scores reflect greater risk," the report states. Also, the weighted average loan-to-value ratio of these loans increased slightly to 101.8% from 101.2% and their weighted average FICO decreased slightly to 580 from 581.

Similar to the prior rated SDART 2015-2 transaction, these very long term loans were used exclusively to finance new, as opposed to used, vehicles.

S&P has slightly increased its expected cumulative net loss range for this transaction, to 15.50%-16.25% from 15.25%-16.00%, primarily to reflect the increased concentration of longer term loans to weaker borrowers.

On the plus slide, the weighted average FICO of the overall pool slightly increased, to 600 from 598; the weighted average loan-to-value of the overall pool decreased to 107.47% from 110.0%; and the percentage of new vehicles increased to 40.12% from 33.92%;

There have also been significant structural changes from SDART 2015-2, according to S&P. Subordination increased for class A to 38.25% of the initial pool balance from 37.50%, increased for class B to 27.35% from 25.75%, increased for class C to 14.20% from 12.75%.

Also, subordination increased for class A to 38.25% of the initial pool balance from 37.85%, increased for class B to 27.35% from 25.75%, and increased for class D to 14.20% from 12.75%.

J.P. Morgan Securities is the underwriter.

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