Stellantis Financial Services is offering $1 billion in asset-backed securities (ABS), collateralized by a pool of prime auto leases on sport utility vehicles.
The Stellantis Underwritten Enhanced Lease Trust, series 2025-B, is funded by revenue from 30,929 leases, and its notes are issued through four senior tranches of class A notes, plus one class each of B and C notes, according to S&P Global Ratings.
Every class of notes in SFUEL 2025-B, as the deal is called, pays a fixed rate, but the expected legal final maturity rates range from Aug. 20, 2026 on the A1 notes to Jan. 22, 2030 on the class C notes, according to S&P.
Losses are staved off by credit support representing 25.3%, 21.7% and 17.6% of the class A, B and C notes, S&P said. That comes from subordination, initial overcollateralization of 10.25%, which builds to a target of 12.65%, and a non-amortizing reserve account representing 0.25% of the pool balance, the rating agency said.
Losses, on an expected net credit basis, for SFUEL 2025-B's securitization value is 1.00%, the rating agency said. For the AAA, AA and A+ stress scenarios, expected credit losses are 5.0%, 4.0% and 3.3%, respectively.
A few structural changes are in SFUEL 2025-B, compared with SFUEL 2025-A, S&P notes. The classes A and B notes benefit from subordination of levels 7.80% and 7.70%, respectively, up significantly from 3.90% and 3.80%, respectively.
New vehicles make up the entire pool, which include the models RAM, Grand Cherokee and Wrangler, S&P said. Leases have weighted average (WA) original terms of 30 months, and borrowers had FICO scores of 779 on a WA basis. On average, the vehicles have a base residual value of $27,695, the rating agency said.
The underlying lease assets also appear to be geographically concentrated, with about 69.56% of them tied to lessors in four states Michigan, New York, Ohio and New Jersey, according to the rating agency.
S&P assigned ratings of A1+ to the class A1 notes, and AAA to the A2 through A4 notes; and AA and A+ to classes B and C, respectively.
