Fitch Rates Wachovia Auto Loan Holder Trust 2006-2 ‘F1+/AAA’
NEW YORK–( BUSINESS WIRE )–Fitch prices Wachovia Auto Loan Owner Trust 2006-2 fixed-rate notes that are asset-backed follows:
–$219,000,000 class A-1 ‘F1+’;
–$378,000,000 course A-2 ‘AAA’;
–$306,000,000 class A-3 ‘AAA’;
–$135,000,000 class A-4 ‘AAA’;
–$45,000,000 class B ‘AA’;
–$48,000,000 class C ‘A’;
–$39,000,000 class D ‘BBB+’;
–$30,000,000 course E ‘BB’.
The securities are supported by a pool of brand new and automobile that is used light-duty truck installment loans originated by WFS Financial Inc (WFS), a subsidiary of Wachovia Bank N.A. (Wachovia). The expected reviews on the records are derived from the improvement given by subordination, over-collateralization (OC), and a money book account. The expected ratings also mirror the servicing abilities of Wachovia, the quality of retail auto receivables originated by WFS, while the sound legal and money movement structures. Wachovia car Loan holder Trust 2006-2 represents Wachovia’s 2nd securitization of WFS collateral subsequent to its purchase of Westcorp and its particular car finance company, WFS.
The class a records have actually credit that is initial (CE) of 13.75 percent, composed of 13.50per cent subordination, and a 0.25% book. The class B records are supported by initial CE of 10.00% made up of 9.75per cent subordination, and a 0.25% book. The course C records have actually 6.00% CE (5.75% subordination and a 0.25% book), the class D records have actually 2.75% initial CE (2.5% subordination and a 0.25% book) and course E notes have actually 0.25% initial CE (0.25% book). CE is anticipated to grow to 15.00per cent for Class the; 11.25% for course B, 7.25 for class C and 4.00% for course D and 1.5% for class ag ag E via accumulation of this money book account to 0.50per cent for the initial pool stability and also the development of OC to 1.00per cent regarding the outstanding pool balance. Money book flooring is scheduled to 0.50per cent for the pool that is initial although the floor for OC equals to 0.50per cent.
The receivables had a weighted average APR of 12.42% as of the statistical cutoff date. The weighted average original readiness of this pool ended up being 67.0 months and also the weighted average remaining term had been 63.5 months causing roughly 3.5 months of security seasoning. The pool includes a concentration that is large of started in Ca (34.02%). The second four largest state levels are Arizona (5.88%), Washington (5.75%), Texas (4.01%) and Nevada (3.14%). The visibility in California may matter the pool to prospective local financial downturns; nevertheless, the staying part of the pool is well diversified.
Interest and principal are payable month-to-month, beginning Dec. 20, 2006. Extra structural security is provided to senior noteholders by way of a payment priority mechanism that is shifting. In each circulation duration, a test would be done to determine note collateralization quantities. If records are undercollateralized, re payments of great interest to classes that are subordinate be suspended making available as major to raised ranked classes.
Based on a report on WFS’s retail car finance profile performance, prior WFS securitizations, as well as the structure associated with the assets within the securitized pool, Fitch expects Wachovia car Loan holder Trust 2006-1 to do in line with current securitizations. Through June 30, 2006, WFS’s handled portfolio that is retail of $13.9 billion had total delinquencies of 1.87percent, and web chargeoffs of 1.28per cent (annualized). Both data had been determined as a portion associated with number of agreements outstanding.
Fitch RatingsDavid Petu, 212-902-0280 (ny)Hylton Heard, 212-908-0214 ( brand brand New York)Ravi R. Gupta, 312-368-2058 (Chicago)Sandro Scenga, 212-908-0278(Media Relations, nyc)