Westpac provides $64M in senior debt finance for AFS AUTO-1 Trust & lowers required credit support for Aaa/AAA & Aa2/AA tranches.
The recent Westpac Institutional Bank credit approval rolled out the senior debt facility availability period and maturity date a another year to 2021.
Reflecting the recent S&P point in time credit assessment and further seasoning of the trust receivables, Westpac reduced the required credit support to 20% for the AFS AUTO-1 Trust Class A Notes that are shadow rated down to Aa2/AA.
"We are particularly pleased with this year's facility extension" says Brad Dale, Executive Director - AFS.
"The entire financial services sector has been under enormous pressure post Royal Commission and this is particularly evident when funding facilities are rolled-over or extended; when audits of risk and compliance systems come under increased scrutiny" says Mr Dale.
"Having said that, AFS had made a strategic decision a number of years ago to migrate its loan origination activity towards prime obligors in specialty niches such as classic cars. This is now being reflected in AFS' pool performance and enables the business to consolidate its position as an alternative asset finance provider" says Mr Dale.