NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (“KBRA”) affirms the ratings of 4 classes of the United Auto Credit Securitization Trust 2012-1 (“UACST 2012-1”), an auto loan ABS transaction, which closed on September 27, 2012. The affirmation in ratings reflects the fact that credit enhancement has increased for each class of notes while losses have been above KBRA’s initial loss expectations. The transaction has breakeven loss multiples which are sufficient for affirmation of ratings on each class of notes.
The collateral in the UACST 2012-1 deal currently includes $100.5 million of loans, as of August 31, 2013. The collateral in the transaction has amortized from $195.0 million at closing. The current credit enhancement levels are 69.61% for the Class A-2 notes, 53.69% for the Class B notes, 32.59% for the Class C notes and 15.38% for the Class D notes. Credit enhancement consists of overcollateralization, subordination of junior notes, cash reserves and excess spread.
United Auto Credit Corporation (“UACC”) is an experienced originator and servicer of subprime auto loans. UACC has originated and serviced subprime auto loans for over 16 years. UACC underwent a restructuring and change in management in 2008. During 2008, the company hired an experienced management team and over the past 5 years has transitioned from a decentralized retail branch network of 144 locations, to a centralized operating structure with a dedicated servicing and collection center.
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- United Auto Credit Securitization Trust 2012-1 Surveillance Report
- United Auto Credit Securitization Trust 2012-1 New Issue Report
- United Auto Credit Securitization Trust 2012-1 Pre-Sale Report
- United Auto Credit Securitization Trust 2012-1 17g-7 Disclosure Report
- U.S Auto Loan ABS Rating Methodology