Preliminary Ratings Assigned To Globaldrive Auto Receivables 2017-A#s Class A And B German ABS Notes

Stocks and Financial Services Press Releases Wednesday September 13, 2017 17:20
MADRID--13 Sep--S&P Global Ratings

MADRID (S&P Global Ratings) Sept. 13, 2017--S&P Global Ratings today assigned its preliminary credit ratings to Globaldrive Auto Receivables 2017-A B.V.'s (Globaldrive 2017-A) class A and B notes. At closing, Globaldrive 2017-A also issued unrated class C notes (see list below).

The notes will securitize a portfolio of auto loan receivables, which the German branch of FCE Bank PLC originated, for mostly private borrowers, in the ordinary course of its business. All of the loans are fully amortizing, and 83% of the pool comprises loans that have a large final instalment in the form of a balloon payment at maturity.

FCE Bank is a direct subsidiary of FCSH GmbH, a direct subsidiary of Ford Credit International Inc. Its ultimate parent is Ford Motor Co. In Germany, FCE Bank provides financial services to its customers through its branch, Ford Bank. This will be FCE Bank's 21st German publicly rated transaction.

Structurally, the transaction is similar to FCE Bank's previous auto loan transactions. The transaction has the same level of credit enhancement and liquidity support as its predecessor, Globaldrive Auto Receivables 2015-A B.V, which we have rated.

At closing, Globaldrive 2017-A will use the note issuance proceeds to directly buy the auto loan receivables from FCE Bank. The transaction is static (i.e., there is no replenishment period) and the notes will start to amortize immediately after closing in strictly sequential order.

A combination of subordination, a cash reserve, and excess spread will provide credit enhancement for the rated notes. A fixed- to floating-interest rate swap with Lloyds Bank PLC as interest swap counterparty will mitigate the interest rate mismatch between the assets and the class A and B notes' liabilities.

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