Santander Consumer USA is bringing a $1.06 billion ABS deal to market that is expected to close June 18.
In its presale report on the transaction, Standard & Poor’s wrote that SCUSA’s managed portfolio performance has worsened with rising delinquencies, repossessions, and net losses. The annualized net loss for the quarter ended March 31, 2014 rose to 7.02% up from 3.36% in 2013.
S&P said the net loss for 2013 rose to 5.81% from 4.56% for 2012.
Nonetheless, SCUSA’s net losses are still lower than they were in 2009, when they reached 12.92%.
S&P said 17% of the new transaction’s pool are loans that have terms extended out between 73 and 75 months. That’s 14.7% more than the first 2014 SCUSA ABS transaction, when just 2.3% of the loans had terms extended out 73 and 75 months.
Weighted average FICO scores decreased to 584 in this transaction, down from 611 during the first transaction. The weighted average internal credit score decreased to 554 in this transaction from 596 in the first one.
