KBRA Assigns Preliminary Ratings to Notes Issued by Westlake Automobile Receivables Trust 2019-2
NEW YORK–(BUSINESS WIRE)–Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to eight
classes of notes issued by Westlake Automobile Receivables Trust 2019-2
(WLAKE 2019-2), an auto loan ABS transaction.
The notes are collateralized by a pool of fixed rate retail automobile
contracts, made to subprime, near prime and prime obligors and secured
by new and used automobiles, sport utility vehicles, light duty trucks
and vans. The preliminary ratings reflect the initial credit enhancement
levels of 42.75% for the Class A-1 and A-2 notes, 34.15% for the Class B
notes, 23.25% for the Class C notes, 13.05% for the Class D notes, 8.55%
for the Class E notes, and 3.50% for the Class F notes. Credit
enhancement consists of overcollateralization, subordination of junior
notes, cash reserves and excess spread. This transaction is Westlake’s
second securitization of 2019 and its 19th securitization
overall.
Westlake specializes in the acquisition and servicing of subprime,
near-prime, and prime automobile retail installment contracts. The
company was founded was founded in 1978 and has benefitted from a stable
and experienced management team, which has managed its business through
several economic cycles.
KBRA applied its Auto Loan ABS methodology and Structured Finance
Counterparty methodology as part of its analysis of the transaction’s
underlying collateral pool, the proposed capital structure and
Westlake’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.
Preliminary Ratings Assigned: Westlake Automobile Receivables Trust
2019-2
| Class | Preliminary Rating | Initial Principal Balance | ||||||
| A-1 | K1+ (sf) | $177,000,000 | ||||||
| A-2-A* | AAA (sf) | $252,490,000 | ||||||
| A-2-B* | AAA (sf) | $108,210,000 | ||||||
| B | AA+ (sf) | $79,400,000 | ||||||
| C | A+ (sf) | $100,600,000 | ||||||
| D | BBB+ (sf) | $ 94,200,000 | ||||||
| E | BB+ (sf) | $ 41,500,000 | ||||||
| F | B+ (sf) | $ 46,600,000 |
*Class A-2 will be split fix/floating. For rating purposes, KBRA assumes
30% of the A-2 will be issued as uncapped floating-rate.
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. 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:
Eric Neglia,
Managing Director
(646) 731-2456
eneglia@kbra.com
Jenny Ovalle, Director
(646) 731-2309
jovalle@kbra.com
Rahel Avigdor, Director
(646) 731-1203
ravigdor@kbra.com
Michael Polvere, Senior Analyst
(646) 731-3339
mpolvere@kbra.com