Wyndham earns AAA on next timeshare ABS, but at a steep price

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Offline TimeshareTalk

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Wyndham Worldwide earned an AAA from Fitch Ratings on its next securitization of timeshare loans, but not because of a big improvement in the credit quality of the collateral.

Rather, the resort operator opted to pay up in the form of additional credit enhancement on the senior tranche of notes to be issued in the $350 million transactions, Sierra Timeshares 2018-2. The $160.89 million of Class A notes benefit from 61.79% “hard” credit enhancement, which is 30.25 percentage points higher than the senior tranche of the previous deal rated by Fitch, which was rated two notches lower at A.

https://asreport.americanbanker.com/news/wyndham-earns-aaa-on-next-timeshare-abs-but-at-a-steep-price [nofollow]