Moody's Investors Service and Fitch Ratings have assigned provisional ratings to a A$247 million securitisation of consumer loans originated by Certegy Ezi-Pay Pty Ltd, a subsidiary of FlexiGroup Ltd. The securitisation, currently being marketed to wholesale investors, comprises eight tranches of notes to be known as the Flexi ABS Trust 2016-1. Fitch and Moody's have rated all tranches bar the lowest ranked A$13 million Class F seller notes.According to a Moody's pre-sale report, this is FlexiGroup's sixth term-securitisation of Certegy assets. The transaction features short-dated Class A1 notes with a legal final maturity of one year, which account for 35 per cent of the total. The Class A1 and provisionally Aaa (sf) rated Class A2 notes have 22.5 per cent credit enhancement at closing.A Fitch pre-sale note stated that, at the cut-off date, the total collateral pool consisted of 131,613 individual consumer loan contracts totalling A$256 million. "The receivables are retail point-of-sale interest-free consumer-finance loans used to finance a wide variety of products including solar equipment (39.0 per cent); jewellery (20.1 per cent); fitness equipment (3.8 per cent); and other products. Homeowners make up 51.4 per cent of borrowers and 34.4 per cent are repeat Certegy customers," Fitch reported.Principal cashflows will be allocated to the short-term tranche in priority to other tranches until it is fully repaid. Moody's said it expected this would be sufficient to amortise the tranche within the 12-month period.Pointing to the high proportion of receivables relating to solar energy, Moody's noted that "while historical performance data for solar energy receivables is limited to only a few years, we expect the performance of these receivables to broadly track the performance of receivables relating to other home-owner industries … [which] typically display lower default rates than [for] non-home-owners…"