Fitch Ratings has assigned Auto ABS Italian Stella Loans 2023-1 S.r.l.'s notes expected ratings, dependent on the receipt of final documentation. The loans are originated by Stellantis Financial Services Italia S.p.A., the captive of Stellantis NV. Headquartered in the Netherlands, Stellantis NV is a multinational automotive manufacturer formed from the merger of Fiat Chrysler Automobiles and the French PSA Group. The proceeds of the euro-denominated notes will be used to fund the purchase of a portfolio comprising auto loans. Alternatively they will be used with balloon or standard amortisation granted to private or commercial borrowers to finance new and used cars. Part of the proceeds will be used to fund a cash reserve. Fitch says the key rating drivers are low expected defaults, significant balloon risk, sensitivity to pro rata amortisation, replacement servicer fee reserve and ‘AAsf’ sovereign cap. Its class A notes’ rating is sensitive to changes in Italy’s international depository receipt (IDR). A downgrade of the IDR could trigger a downgrade of its rating. The opposite effect would occur if the IDR is upgraded, according to Fitch.
