Privately owned Allied Credit is marketing a term securitisation backed by motorcycle and marine receivables, a financing said by the lender and its bankers to be a first ABS of its type for this asset class in Australia.
Moody's Investors Service has assigned provisional ratings to six of the seven classes of notes that will issued by the trustee of Allied Credit ABS Trust 2020-1.
This action by Moody's covers all but A$7.6 million of the $200 million in debt securities being rated.
Allied Credit's total loan book was around A$430 million as at 31 August 2020. The privately owned company was established in 2010 to finance motorcycle and marine consumer loans. In 2019, Allied expanded into motor vehicle finance.
The private lender's board is chaired by former banker (and co-founder) Davis Knox.
Allied's CEO is Jon Moodie, a 30 year veteran of specialist equipment finance. Moodie lists Mercedes Benz Finance NZ, Daimler Finance Australia and Macquarie Leasing as prior roles growing a challenger finance business. Trading for six years, Allied Credit so far are not jumping on the fintech label; and they're bigger than most.
The notes that have been assigned preliminary ratings by Moody's ranged from the $149.0 million Class A Notes – assigned (P)Aaa (sf) – to the $3.0 million Class F Notes, assigned (P)B2 (sf)
The $7.6 million Equity G Notes were not rated by Moody's.
Key pool features:
• The securitised loans are mainly consumer, and backed by motorcycles (71.4 per cent), marine assets (15.2 per cent), auto (10 per cent and other recreational vehicles (3.5 per cent).
• Interest rates in the portfolio range from 0.00 per cent to 21.95 per cent, with a weighted average interest rate of 10.2 per cent.
• The weighted average seasoning of the portfolio is 13.6 months, while the weighted average remaining term of the portfolio is 47.5 months.