Toyota plans to issue $1 billion in securities backed by auto loan receivables, bringing the auto-related primary pipeline to over $2.6 billion this week.

Toyota Auto Receivables Owner Trust 2014-C is backed by prime fixed-rate loans. Bank of America Merrill Lynch is leading the deal.

Standard & Poor’s and Moody’s Investors Service have assigned preliminary ratings to the deal. The class A-1 money market notes are rated ‘A-1+’/ ‘P-1’. Three tranches of ‘AAA’/’Aaa’ rated notes will also be offered. The class A-2 notes are due Oct 2015, the class A-3 notes are due July 2-18 and the class A-4 notes are due April 2020. Moody’s assigned ratings of ‘Aa3’ to the subordinate, class B notes that are due October 2020.

The transaction is the issuer’s third deal this year. With this deal, Toyota will have issued $4.3 billion year to date. The 2014-C collateral pool has high credit quality, similar to the issuer's previous deals. The obligors' weighted average FICO score is 758, and approximately 80% of the obligors by balance have FICO scores greater than 700, according to S&P.

Of the 22.6% of the pool's longer term loans — loans of 61-72 months —only 20.5% have remaining terms of that duration due to seasoning. The collateral pool includes no loans with original maturity terms greater than 72 months or borrowers with FICO scores below 620.  

According to S&P, year-to-date volumes for retail auto-loan ABS issuance is $55 billion, with transactions backed by prime loans accounting for $33 billion.

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