PenFed Credit Union, one of the nation’s largest federal credit unions, received notable upgrades and affirmations from S&P Global Ratings on the ratings of the bonds issued through its prime auto loan securitization offerings PenFed Auto Receivables Owner Trust 2022-A and 2024-A due to strong performance.
S&P Global Ratings upgrades to PenFed Auto Receivables Owner Trust 2024-A includes:
- Class B has been elevated to ‘AAA (sf)’ from ‘AA (sf)’,
- Class C now stands at ‘AA+ (sf)’ from ‘A+ (sf)’, and
- Class D has moved to ‘A+ (sf)’ from ‘BBB (sf)’.
Affirmations include:
- PenFed Auto Receivables Owner Trust 2022-A’s Class B, C, and D notes remain at ‘AAA (sf)’
- For 2024-A, Class A-3 and A-4 also continue to hold their ‘AAA (sf)’ ratings.
Adding to the positive momentum, S&P has revised the lifetime cumulative net loss expectation (CNL) for the 2024-A transsure thnxaction from 1.55% to 1.20% and confirmed the previously revised lifetime CNL for 2022-A at 0.40%. View S&P’s full rating action commentary.
PenFed’s August 2024 transaction issued $447,400,000 of fixed-rate, amortizing asset-backed notes backed by prime auto loans. PenFed’s inaugural transaction in August of 2022 issued $460,292,000 of fixed-rate, amortizing asset-backed notes backed by prime auto loans. The securitizations are private placement offerings, which in the United States is offered only to qualified institutional buyers under Rule 144A. The asset-backed notes were offered in four senior and three subordinate tranches of notes and rated by S&P and Fitch.
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