Nissan leases secure $ 1.2 billion in auto ABS

New Nissan and Infiniti vehicles on leases will secure $ 1.2 million in asset-backed securities (ABS) through the Nissan Auto Lease Trust, 2022-A, transaction. The deal has a larger reserve account compared to an increased base residual value as a percentage of securitization, compared with the most recent deal.

The reserve account on 2022-A will initially have an initial aggregate securitization value of 0.4%, which will be 0.65% of a target to be built, and then a discount of 0.50% after the Class A-2 is paid off, according to S&P Global Ratings . On Series 2021-A, the reserve account was 0.25% of the initial aggregate securitization value and 0.50% of a target.

In another change from the program’s previous deal, the Nissan Auto Lease Trust, 2022-A’s base residual value — as a percentage of securitization value — had increased to 72.3%, up from 71.6%. On average the base residual value increased to $ 18.1 million, according to S&P.

Nissan Motor Acceptance is a sponsor, servicer and administrator on the deal, which is slated to close in late June, S&P said. Notes, most of which are fixed, will be issued by four senior classes, class A-1, A-2a / A2b, A-3 and A-4. The class A-2 notes might be composed of a fixed portion, class A-2a and a floating-rate class A-2b.

The S&P expects to assign a rating of A-1 + to the Class A-1 notes, while the rest of the classes must be assigned ‘AAA’ ratings.

The Notes to Nissan Auto Lease Trust, 2022-A, will have initial overcollateralization of 22.5%, a 0.4% non-amortizing reserve account that builds to a target of 0.65%, before leveling down to 0.50% after the class A-2 notes pay off, plus excessive spread. The notes will have an overall availability of about 26.3%.

The underlying collateral pool of 48,416 prime auto lease receivables that have a weighted average FICO score of 762.

On a weighted average (WA) basis, the lease terms have an original term of 37 months, and a remaining term of 25 months. Leases that had terms that were equal to or less than 36 months make up 76.4% of the pool. While Nissan and Infinity models make up the entire collateral pool, the vast majority, 83.1% are Nissans, while Infinity Comprise the Rest.