TYSONS, Va.–PenFed Credit Union is reporting it has received notable upgrades on the ratings of the bonds issued through its inaugural prime auto loan securitization offering—PenFed Auto Receivables Owner Trust 2022-A—due to strong performance.
PenFed said its August 2022 transaction issued $460,292,000 of fixed-rate, amortizing asset-backed notes backed by prime auto loans. The securitization is a private placement offering, which in the United States is offered only to qualified institutional buyers under Rule 144A, the $35-billion credit union explained, adding the asset-backed notes were offered in four senior and three subordinate tranches of notes and rated by S&P and Fitch.
Secondary Factors Included
PenFed noted the rating actions reflect collateral performance to date and S&P expectations regarding future collateral performance, as well as the transaction's structure and credit enhancement. Additionally, S&P incorporated secondary credit factors, including credit stability, payment priorities under various scenarios, and sector- and issuer-specific analyses.
PenFed, which is the country’s third-largest CU, said it has the second-largest consumer loan portfolio among all credit unions across auto, personal, student, consumer loans and credit cards.
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