The Philadelphia-based American Heritage Federal Credit Union ($4.8 billion in assets, 315,518 members) expects to close Nov. 20 on the sale of $300 million in securities backed by some of its prime auto loans.

Pre-sale reports from Moody’s and Standard & Poor’s showed the loan pool consists of 85% used cars with 50% of the borrowers from Pennsylvania and 34% from New Jersey.

Moody’s and S&P have assigned preliminary investment-grade ratings to the issue, based in part on credit supports. Both Moody’s and S&P presale reports released Nov. 7 said a major strength of the deal was the high quality of the loans. The average weighted FICO score for the pool was 763 with a minimum of 640.

The average FICO score “is at the higher end compared to the other credit union deals we rated, but is generally lower than the captive- and bank-sponsored deals we have recently rated,” Moody’s said.

With the sale, credit unions will have issued nearly $5.8 billion in securities backed by auto loans since 2019, including $2.4 billion through six deals this year, surpassing 2023’s record $2.1 billion.