KBRA Assigns Preliminary Ratings to Crédito Real USA Auto Receivables Trust 2021-1

NEW YORK–(BUSINESS WIRE)–Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to three classes of notes issued by Crédito Real USA Auto Receivables Trust 2021-1 (“CRUSA 2021-1”), a $130.38 million auto loan ABS transaction.

This transaction represents the inaugural term ABS securitization issued by Crédito Real USA Finance (“CRUSAFIN”, “Crédito Real” or the “Company”). Crédito Real has been in the subprime auto finance business for over 14 years (previously incorporated as AFS Acceptance) and currently offers automotive financing to traditional subprime obligors, borrowers in the Latin American community, and customers who have recently filed for bankruptcy. The collateral in CRUSA 2021-1 has an average principal balance of $13,647, weighted average non-zero FICO score of 558, weighted average APR of 23.46%. The transaction has initial hard credit enhancement levels ranging from 30.75% for the Class A notes to 15.50% for the Class C notes.

KBRA applied its Auto Loan ABS Global Rating Methodology and Global Structured Finance Counterparty Methodology. In applying the methodologies, KBRA analyzed Crédito Real’s static pool data, and the underlying collateral pool using stressed cash flow assumptions. Operative agreements and legal opinions will be reviewed prior to closing.

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Disclosures

Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority pursuant to the Temporary Registration Regime. 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.

Contacts

Analytical Contacts
Alla Mikhalevsky, CFA, Director (Lead Analyst)

+1 (646) 731-3356

alla.mikhalevsky@kbra.com

Frank Connor, Analyst

+1 (646) 731-2408

frank.connor@kbra.com

Alex Luthringer, Senior Analyst
+1 (646) 731-1252

alex.luthringer@kbra.com

Eric Neglia, Senior Managing Director (Rating Committee Chair)

+1 (646) 731-2405

eric.neglia@kbra.com

Business Development Contact
Ted Burbage, Managing Director

+1 (646) 731-3325

tburbage@kbra.com

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