TAMPA—GTE Credit Union here is planning to issue $184.8 million in prime auto loan asset-backed securities, according to a presale report by S&P Global Ratings.
This is the first auto loan securitization by GTE CU, and the deal is expected to close Nov. 26. The S&P Global Ratings report was first reported Keith Leggett, the former senior vice president and senior economist at the ABA, on his blog.
The credit quality of the underlying pool, which consists of prime automobile loans, had a weighted average non-zero FICO score of 727.
Robust levels of credit enhancement mitigate the collateral pool's extremely high geographic concentration in and around the Tampa region of approximately 98%, Leggett said.
Long Maturities
The loan pool has a high concentration of loans with maturities greater than 72 months comprising over 62% of the aggregate pool. Approximately 31% of the pool is comprised of loans with original terms of 73-75 months, and another 31% has terms of 75-84 months. The underlying pool of auto loans has a weighted average loan-to-value ratio of approximately 92.93%, and approximately nine months of weighted average seasoning, S&P Global said.