KBRA Assigns Preliminary Ratings to CarNow Auto Receivables Trust 2019-1

NEW YORK–(BUSINESS WIRE)–Kroll Bond Rating Agency (“KBRA”) assigns preliminary ratings to four classes of notes issued by CarNow Auto Receivables Trust 2019-1 (“CNART 2019-1”), a subprime auto asset-backed securities transaction.

CNART 2019-1 contains approximately $132.1 million of receivables as of June 30, 2019. The collateral balance will total $162.2 million after completion of the prefunding period. The prefunding will total approximately $30.1 million and will occur within three months from closing. The transaction has initial credit enhancement levels ranging from 47.50% for the Class A notes to 18.50% for the Class D notes. The target enhancement levels for the Class A notes and Class D notes are 53.25% and 24.25%, respectively.

This transaction represents the first term ABS securitization in 2019 for Byrider and its finance subsidiary Byrider Finance, LLC, dba CarNow Acceptance Company and Byrider’s eighth securitization overall. Byrider Finance, LLC is the sponsor and servicer of the loans supporting the offered securities for this transaction.

Byrider has been in the Buy Here Pay Here auto finance business for approximately 30 years with experience buying, reconditioning and selling vehicles and originating and servicing auto loans to lower quality subprime obligors. Byrider focuses on providing reliable, needs based transportation and financing to its customers. The Company i) performs a rigorous inspection and reconditioning process on each vehicle, ii) offers transparent vehicle pricing with an option to separately purchase a 48 month/60,000 mile extended service contract, iii) provides financing that fits the customer’s personal budget including bi-weekly, semi-monthly or monthly payment options to match the customer’s payday cycle and iv) focuses on customer service at each stage of the process. Byrider has a network of 149 stores, of which 30 are Company-owned and 119 are franchised as of June 30, 2019. The Company-owned stores are located predominantly in the mid-west, Indiana, Ohio, Pennsylvania, Kentucky, Tennessee, and Illinois.

KBRA applied its Global Auto Loan ABS Methodology and its Structured Finance Counterparty Methodology as part of its analysis of the transaction’s underlying collateral pool, the proposed capital structure and Byrider’s historical static pool data. KBRA also conducted an operational assessment of the Company, 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.

Preliminary Ratings Assigned: CarNow Auto Receivables Trust 2019-1


Preliminary Rating

Expected Initial Principal



AA (sf)



A (sf)



BBB (sf)



BB (sf)


To access ratings, reports and disclosures, click here.

Related Publications: (available at www.kbra.com)




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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, is 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.



Rahel Avigdor, Director

(646) 731-1203

[email protected]

Andrew Silverhardt, Senior Analyst

(646) 731-2492

[email protected]

Eric Neglia, Managing Director

(646) 731-2456

[email protected]

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