Volkswagen is in the market with a $1 billion securitization of auto loan receivables the issuer’s first of 2014.
Fitch Ratings has assigned preliminary ratings to the deal, Volkswagen Auto Loan Enhanced Trust 2014-1. The capital structure will offer three tranches of AAA’-rated notes and one F1+’ rated money market fund tranche.
JP Morgan and RBS Securities are the lead underwriters on the transaction.
The notes are structured with credit enhancement of 3.10%. The class A1 notes are due May 2015, the class A-2 notes are due March 2017, the class A-3 notes are due October 2018 and the class A-4 notes are due September 2020.
VALET 2014-1 is backed by loans secured by new and used Volkswagen and Audi cars and light-duty trucks and underwritten by Volkswagen Credit, the indirect wholly owned captive finance subsidiary of Volkswagen Group of America (VWGA).
The weighted average FICO score for 2014-1 is 763, consistent with the 2013-2 (762) and 2013-1 (763) deals. New vehicles total 69.9% of the pool, slightly lower than 2013-2 (71.06%) deal. The remaining 30.06% consist of used and pre-owned vehicles.