S&P Upgrades PenFed Auto Loan Securitizations Due to Strong Performance | PR Newswire [Video]

S&P Global Ratings upgraded ratings on two classes and affirmed ratings on three classes in PenFed Auto Receivables Owner Trust 2022-A.

, /PRNewswire/ — PenFed Credit Union, the nation’s second-largest federal credit union, received notable upgrades on the ratings of the bonds issued through its inaugural prime auto loan securitization offering PenFed Auto Receivables Owner Trust 2022-A (PNFED 2022-A) due to strong performance.

S&P has revised the Cumulative Net Loss (CNL) expectations of the PNFED 2022-A transaction to 0.40 bps from the current estimate of 0.70 bps. Their original estimate of CNL was 1.40 – 1.60 bps at the time of closing. S&P has also upgraded the C and D tranches to “AAA” from their current rating of “AA+” and “AA” ratings respectively. They have also affirmed the “AAA” rating to A-3, A-4 and B tranches. Currently all the tranches that are outstanding in this transaction have a “AAA” rating from S&P.

The rating actions …