Toyota Motor Credit is marketing a $1.25 billion securitization of prime fixed-rate auto loans called Toyota Auto Receivables 2015-A, according to Standard & Poor’s
Barclays, J.P. Morgan Securities and RBC Capital Markets are the lead managers.
S&P expects to assign an A-1+’ rating to $351 million of class A-1 money market notes and a 'AAA' rating to $867 million of class A notes offered over three tranches.
The class A-1 notes are due March 2016, the A2 notes are due July 2017, the A3 notes are due February 2019 and the A4 notes are due June 2020.
The deal is structured with a $31.3 million subordinate tranche that has been assigned a preliminary rating of AA+’.
The notes are backed by a pool of most new car loans underwritten by Toyota. The pool composition is similar to the issuer’s prior deal, 2014-C. However loans included in the 2015-A transaction have been paying for average 15.3 months compared with 14,9 months for the previous deal. The loans in the current deal are also more levered with an average loan-to-value ratio of 95.8%, compared with 95.6% in the previous deal.
Another difference is that the proportion of loans with terms of 61 to 72 months increased to 24.6% of the latest pool compared with 22.6% of the previous pool.