GM Financial Consumer Automobile Receivables Trust is preparing to raise $925 million pool of asset-backed securities, collateralized by a pool of retail installment loan contracts.

The deal will sell notes to investors through eight tranches of class A, B and C notes, according to Moody’s Ratings. There are five class A tranches, and they have total initial hard credit enhancement equaling 6.10% of the note balance.

Outside of that, the class B and C notes benefit from 4.50% and 3.00% of hard credit enhancement, respectively. Also, maturities on the outstanding debt range from Nov. 16, 2026 on the A1 notes to April 16, 2032 on the A4 notes, Moody’s said.

The A2B and A3 notes will issue the bulk of GMCAR 2025-4’s note balance, $575.9 million, according to Moody’s.

BMO Capital Markets heads a slew of lead underwriters, which includes Credit Agricole Securities, Deutsche Bank Securities and J.P. Morgan Securities, according to Moody’s.

GM Financial’s prudent underwriting practices is one of the deal’s credit strengths, giving the asset pool its strong credit quality, according to Moody’s. Underlying borrowers have a weighted average (WA) FICO score of 781 and is just one point lower than the FICO score of borrowers on the 2025-2 deal.

In GMCAR 2025-4, the underlying leases have an original term that is two months higher than the 2025-2 pool, although about 69% of the pool is composed of loans with original terms longer than 60 months, slightly lower than the 2025-2 pool, Moody’s said.

The deal has some credit challenges, however, including that 34% of the pool includes 76-84 month loans, which is highest compared to the platform’s last few transactions, Moody’s said.

There is also an unhedged floating rate liability, with up to 75% of the class A2 notes paying a coupon based on the Secured Overnight Financing Rate (SOFR). Since the assets pay a fixed rate, interest rate spikes could eat away at excess spread in the transaction.

Moody’s assigns ratings of P1 to the A1 tranche; Aaa to the A2A through A4 tranches; Aa1 to the B tranche and Aa3 to the class C notes.