Wednesday, 26 October 2011
Moody’s gives rating green light to FleetPartners’ FP Ignition Trust
International ratings agency Moody’s Investors Service has assigned a definitive rating to notes issued by FP Ignition Trust 2011-1 managed by FleetPartners, New Zealand’s preferred fleet solutions company.
It is the first time Moody’s has rated a vehicle-backed operating lease securitisation in the New Zealand market.
The $300m note issue is also a first for the New Zealand fleet industry, and follows two successful securitisation transactions completed by FleetPartners Australia in 2010.
The notes, which range from Class A (rated by Moody’s Assigned Aaa(sf)) to Class D (rated Baa2(sf)) fund a pool of operating and finance leases for passenger and light commercial vehicles in FleetPartners’ national fleet. The collateral pool also includes finance leases of heavy commercial vehicles.
In its analysis, Moody’s noted the sector’s ‘stable’ outlook and FleetPartners’ diverse, ‘well seasoned’ passenger and light commercial vehicle fleet.
FleetPartners Managing Director, Dennis Kelly, said obtaining the Moody’s rating was an important element in building institutional investors’ confidence in the FleetPartners funding platform and business.
“The FP Ignition Trust note issue continues the process of building a secure, permanent funding base and investment profile for our business. The fact that Moody’s has been able to rate the notes gives us confidence in our strategy.
“What makes this note issue unique is the fact we are securitising the residual value of our fleet as well as lease receivables. For investors seeking diversification, the FP Ignition Trust offers something quite different in the ABS market, which is predominantly driven by mortgage-backed issues.
“At a time when many of our competitors are facing capital constraints, FleetPartners has gone from strength to strength. We have long-term funding, our market share is growing and we continue to bring innovative products to market,” Mr Kelly said.