Volkswagen Bank GmbH is planning its second public securitization of French auto loan receivables. The 500 million ($549.12 million) transaction, called Driver France Two, will be rated by Moody’s Investors Service and Fitch Ratings.
The deal offers three tranches of floating-rate asset backed notes: 465 million ($510 million) of class A notes are provisionally rated Aaa’ and AAA’ by Moody’s and Fitch, respectively. These senior notes benefit from 8% credit enhancement. There are also 16.2 million ($17.72 million) class B notes, rated A+’ and A1’, that benefit from 4.8% credit enhancement. The remaining 15.3 million ($16.8 million) subordinate level notes have not been rated by either agency.