Consumer ABS transactions are filling the post-Thanksgiving holiday pipeline.

Sallie Mae is planning to sell a FFELP-backed student loan ABS called SLM Student Loan Trust 2012-8.

Moody's Investors Service has assigned provisional ratings of 'Aaa (sf)' to the class A notes worth roughly $1.5 billion and 'A1 (sf)' to the class B worth $42.5 million.

According to the agency, the ratings are based on the underlying collateral comprising FFELP consolidation student loans, which are indirectly guaranteed by the U.S. Department of Education.

Moody's also considered the trust's overcollateralization expected to have an initial parity level of 101.78% and its debt service reserve account of 0.25% of the pool balance available to cover payment shortfalls of the servicing and administration expenses, interest on the notes, and principal at maturity.

The class A notes are also expected to benefit from the 2.8% subordination provided by the class B notes. Moody's added that the expected net loss for the SLM 2012-8 deal is roughly 17 basis points.

Meanwhile, Standard & Poor's has assigned its preliminary ratings to the deal called American Credit Acceptance Receivables Trust 2012-3's worth $205 million. It is backed by subprime auto loans.

The preliminary ratings reflect S&P's view of the availability of roughly 45% for the A notes, 42% for the B, 35% for the C notes, and 30% for the D notes of credit support based on break-even stressed cash flow scenarios including excess spread. This offers coverage of over 1.95x, 1.80x, 1.50x, and 1.25x of the agency's expected net loss range of 21.65%-22.15% for the class A, B, C, and D notes, respectively, S&P said.

The 144A transaction, with joint bookrunners Deutsche Bank Securities and Wells Fargo Securities, might price this week, according to BloombergGuzman & Co. serves as the deal's co-manager.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.