A revolving pool of receivables from dealer floorplan credit lines that Yamaha Motor Finance extends through its franchise business will support $400 million in asset-backed securities.
The deal, Yamaha Motor Master Trust II, series 2026-A will issue the notes through three tranches of notes, the bulk of which will be issued through the A1/A2 notes, according to analysts at Fitch Ratings.
The rating agency said all the principal allocated to the class A notes will either accrue interest based on a fixed-rate coupon, or a floating-rate coupon, initially the Secured Overnight Financing Rate (SOFR).
The benchmark could change under certain circumstances, and the maximum allocation to the A2 notes will be 50% of the overall size of the A class, Fitch said.
YMMT II, series 2026-A's notes all have a legal final maturity date of April 15, 2031, with monthly repayments to note holders. The notes have credit enhancement levels of 22.5%, 17.80% and 13.30%--not including excess spread—on classes A,B, and C, respectively.
Mizuho Securities is the lead structuring manager on the deal, which includes early amortization and performance triggers, Fitch said.
The transaction will include a yield supplement interest collection process to support monthly collections that will cover interest on the series notes and protect against shortfalls in interest liabilities, the rating agency said.
Despite all the forms of credit support, one credit highlight is a potential negative, according to Fitch.
YMMT II's pool includes 1,716 accounts selling new vehicles, with an average principal balance of $727,478. On a weighted average (W) basis, the accounts have a spread of 1.74% over the SOFR, the rating agency said.
Fitch notes that the dealers are in resilient financial health, for several reasons. The portfolio concentration is well managed, as the largest dealer represents just 1.79% of total receivables as of yearend 2025 and the second largest, accounts for 1.43%, Fitch said.
The portfolio is also geographically diversified, with Florida, North Carolina and Texas representing 16.68%, 5.06% and 4.72%, respectively.
Fitch assigns ratings of AAA, AA and A to classes A1/A2, B and C, respectively.
