Santander Consumer Bank S.A. plans to issue its first public Polish securitization — a PLN1.4 billion ($46 million) transaction that is backed by a portfolio of Polish auto and rental-purchase loans.
Moody's Investors Service and Fitch Ratings have assigned preliminary ratings to the notes to be issued by SC Poland Auto 2014-1.
The PLN1.15 billion class A floating rate notes, due July 2025, will be rated Aa3’/ AA’. The PLN 209 million, class B, floating rate notes due July 2025, will be rated Aa3’/ A’.
The capital structure will also offer PLN 374 million of subordinated notes, due July 2025 that will not be rated by the ratings agencies.
Santander’s deal is backed by a portfolio of auto loans (70%) and rental-purchase receivables (30%) to individuals (70%), self-employed borrowers (27%) and business entities (3%). Within the auto loan pool, 27% of loans are backed by used vehicles and 73% by new vehicles; 70% of obligors are individuals, and 30% are business entities or self-employed individuals.
As of March 2014 the provisional portfolio consists of 317,879 loans with a weighted average seasoning of 18 months and an aggregate outstanding amount of approximately PLN 1,741 million, according to the Moody’s presale report.
SCB’s auto loan business focuses on new vehicle financings where it is a market leader among non-captive providers, with a market share of about 5%, according to the Fitch presale report. For Kia, Hyundai, Mazda, Mitsubishi and Suzuki vehicles, SCB is a captive lender, while for other brands, it competes mainly with the two other major non-captive providers, Getin Noble and BNP Paribas.