KBRA Assigns Preliminary Ratings to American Credit Acceptance Receivables Trust 2022-2
NEW YORK–(BUSINESS WIRE)–KBRA assigns preliminary ratings to six classes of bonds issued by American Credit Acceptance Receivables Trust 2022-2 (“ACAR 2022-2”), an asset-backed securitization secured by a pool of auto loans.
ACAR 2022-2 will issue six classes of notes totaling $425.00 million. The ratings reflect an initial credit enhancement from 57.50% for Class A Notes to 7.50% for Class F Notes. The credit enhancement will consist of overcollateralisation, subordination of the Senior Note Classes ( except for Class F Notes), a cash reserve account and an excess spread.
This transaction represents the second ABS term securitization in 2022 for American Credit Acceptance, LLC (“ACA” or the “Company”). The Company issued its first securitization transaction in October 2011 and has since issued 37 additional transactions for a total amount of approximately $10.8 billion.
KBRA applied its global ABS rating methodology for auto loans, as well as its global structured financial counterparty methodology and its global ESG rating methodology as part of its analysis of the transaction’s underlying collateral pool, the structure of the proposed capital and historical data from the ACA static pool. KBRA also conducted an operational assessment of the Offeror and the Managing Agent, as well as a review of the legal structure of the transaction and transaction documents. Operational agreements and legal opinions were reviewed prior to closing.
Further information on key credit considerations, sensitivity analyzes that consider factors that may affect these credit ratings and how they could lead to an upgrade or downgrade, and ESG factors (where they are a key factor in changing the credit rating or rating outlook) can be viewed in the full rating report mentioned above.
A description of all substantially significant sources that were used to prepare the credit rating and information on the methodology(ies) (including all significant models and sensitivity analyzes of the main relevant rating assumptions, the where applicable) used to determine the credit rating are available in the information disclosure form(s) located here.
Information on the meaning of each rating category can be found here.
Additional information relating to this rating metric is available in the information disclosure form(s) referenced above. Additional information regarding KBRA’s policies, methodologies, grading scales and disclosures is available at www.kbra.com.
Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the United States Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a rating agency with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a rating agency with the UK Financial Conduct Authority under the temporary registration scheme. In addition, KBRA is designated as the Designated Rating Agency by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a credit rating provider.