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Week Sees Active Auto Pipeline

This week's asset-backed pipeline is once again filled with auto transactions. The sector's dominance of ABS new-isuance is a continuation of an ongoing market trend.

According to Sept. 7 Bank of America Merrill Lynch report, higher auto loan debt has contributed to $65.7 billion in auto ABS this year. The level of debt and ABS volume has been supported by higher vehicles sales, analysts said. New-issuance in ABS is currently at $132.2 billion, the bank reported.

BMW Financial Services is planning to sell a $783 million securitization from is dealer floorplan master owner trust.

Fitch Ratings has assigned a provisional 'AAA' rating to the $750 million, class A notes of the deal structure, Series 2012-1 (2012-1). It is structured with a three-year expected maturity.

The class B notes are non-interest bearing and will be retained by the issuer, and not rated by Fitch.

The collateral securing the notes will consist of a revolving pool of dealer floorplan receivables arising mainly from credit lines made by NA, LLC (BMW FS) to retail automotive dealers authorized by BMW of North America to sell BMW and MINI brand vehicles.  

Moody's Investors Service has rated the latest dealer floorplan deal issued by Ford Motor Credit Co. The rating agency released a presale report today and has assigned provisional ratings to Ford Credit Master Owner Trust A Series 2012-4. The class A-1 and A-2 notes are rated 'Aaa'; the class B notes are rated 'Aa1'; the class C notes are rated 'Aa3' and the class D notes are rated 'A3'.

The underwriters on the transaction are Barclays Capital, HSBC, JPMorgan Securities, RBC Capital Markets, and Royal Bank of Scotland.

The company is also planning to issue Series 2012-5.

A June 7, Barclays Capital report highlighted the higher credit enhancement requirements dealer floorplan ABS deals have today than transactions done before 2009. This fact makes these structures well protected against all but the most severe stress scenario, particularly at the senior level, according to the report.    

Consumer Portfolio Services is also in the market with its $147 million auto securitization deal, CPS Auto Receivables Trust 2012-C. Moody's has assigned provisional ratings to the capital structure. The class A and B notes are rated 'A2'; the class C notes are rated 'Baa2'; the class D notes are rated 'Ba2' and the class E notes are rated 'B1'.

Moody's has also assigned provisional ratings to $500 million of notes to be issued by USAA Auto Owner Trust (USAOT) 2012-1. The deal comprises $142 million class A-1 notes with a preliminary rating of 'Prime-1(sf)'; $172 million class A-2 notes rated 'Aaa (sf)'; $125 million class A-3 notes rated 'Aaa (sf)'; $52.18 million class A-4 notes rated 'Aaa (sf)'; and $8.82 million class B notes rated 'A1 (sf)'.

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