KBRA Assigns Preliminary Ratings to American Credit Acceptance Receivables Trust 2019-2
NEW YORK–(BUSINESS WIRE)–Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to six
classes of American Credit Acceptance Receivables Trust 2019-2 (“ACAR
2019-2” or the “Issuer”), an auto loan ABS transaction.
ACAR 2019-2 will issue six classes of notes totaling $274.8 million that
are collateralized by a pool of retail automobile contracts, made to
subprime obligors and secured by new and used automobiles and
motorcycles.
The structure for ACAR 2019-2 includes a prefunding account that will be
used to purchase additional receivables up to 22% of the initial cutoff
date pool balance and expected balance of the subsequent receivables for
up to 3 months after closing. The transaction has initial credit
enhancement levels of 64.10% for the Class A Notes through 9.90% for the
Class F Notes. Credit enhancement consists of excess spread,
overcollateralization, subordination (except for the Class F Notes) and
a reserve account funded at closing.
American Credit Acceptance, LLC (“ACA” or the “Company”) issued its
first securitization in October 2011 and since then has issued 26
additional transactions in the total amount of approximately $5.52
billion. ACA is a subprime auto finance company that has been under
current ownership since 2007.
KBRA applied its Global Auto Loan ABS methodology as part of its
analysis of the transaction’s underlying collateral pool, the proposed
capital structure and ACA’s historical static pool data. KBRA also
conducted an operational assessment on the originator and servicer, as
well as a review of the transaction’s legal structure and transaction
documents. KBRA will also review the operative agreements and legal
opinions for the transaction prior to closing.
To access ratings, reports and disclosures, click here.
|
Preliminary Ratings Assigned: American Credit Acceptance |
||||||||
|
|
||||||||
| Class | Preliminary Rating | Principal Balance | ||||||
| A | AAA (sf) | $112,200,000 | ||||||
| B | AA (sf) | $34,500,000 | ||||||
| C | A (sf) | $53,100,000 | ||||||
| D | BBB (sf) | $39,000,000 | ||||||
| E | BB (sf) | $18,900,000 | ||||||
| F | B (sf) | $17,100,000 | ||||||
Related Publications: (available at www.kbra.com)
CONNECT WITH KBRA
Twitter
LinkedIn
Download
the iOS App
YouTube
About KBRA and KBRA Europe
KBRA is a full-service credit rating agency registered with the U.S.
Securities and Exchange Commission as an NRSRO. In addition, KBRA is
designated as a designated rating organization 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, and
is a certified Credit Rating Agency (CRA) by the European Securities and
Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is
registered with ESMA as a CRA.
Contacts
Analytical Contacts:
Eric
Neglia, Managing Director
(646) 731-2456
eneglia@kbra.com
Jenny
Ovalle, Director
(646) 731-2309
jovalle@kbra.com
Michael
Polvere, Senior Analyst
(646) 731-3339
mpolvere@kbra.com
Rosemary
Kelley, Senior Managing Director
(646) 731-2337
rkelley@kbra.com