Volkswagen Credit Inc plans to issue a $1 billion auto loan securitization, its first in 2013.

The deal, VALET 2013-1 is backed by loans secured by new and used Volkswagen and Audi cars, minivans, and light-duty trucks and underwritten by VCI, the indirect wholly owned captive finance subsidiary of Volkswagen Group of America (VWGA).

Fitch Ratings assigned preliminary ratings to the deal. The class A-1 notes are rated ‘F1+’; and three additional class A tranches, rated ‘AAA’ will be sold under the capital structure. Barclays Capital is lead manager on the deal.

According to the Fitch presale report the weighted average FICO of 763 for the loans included in the portfolio fall in line with recently issued VALET transactions, but the pool contains a higher concentration of extended term loans, which have experienced greater losses historically.

New vehicles total 73.01% of the pool, lower than 2012-2 (75.08%) and 2012-1 (73.39%). The remaining 26.99% consists of used vehicles. Historical performance indicates that used vehicle loans tend to incur higher net losses than new vehicle loans, according to Fitch.

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