NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) announces the preliminary ratings to five classes of notes issued by CarNow Auto Receivables Trust 2015-1 (“CNART 2015-1”), a subprime auto asset-backed securities transaction.
CNART 2015-1 will issue $131.2 million of notes collateralized by approximately $156.2 million of subprime auto loan receivables. The preliminary ratings reflect the initial credit enhancement levels ranging from 55.00% for the Class A notes to 17.50% for the Class E notes, which build to 58.75% and 21.25% for the Class A and Class E notes, respectively.
This transaction represents the first term ABS securitization in 2015 for J.D. Byrider and its finance subsidiary Byrider Finance, LLC d/b/a CarNow Acceptance Company (“J.D. Byrider”, “CNAC” or the “Company”) and the second securitization that Kroll Bond Rating Agency (“KBRA”) has rated for J.D. Byrider.
J.D. Byrider has been in the buy here pay here auto finance business for over 25 years with experience buying, reconditioning and selling vehicles and originating and servicing auto loans to lower quality subprime obligors. As of June 30, 2015, J.D. Byrider is a used vehicle retailer with a network of 168 stores, of which 30 are Company-owned and 138 are franchised J.D. Byrider’s primary geographical focus is on the Midwest, Mid-Atlantic, and Southeast regions. The Company i) performs a rigorous inspection and reconditioning process on each vehicle, ii) offers no-haggle vehicle pricing with a 24 month /24,000 mile warranty iii) provides financing that fits the customer’s personal budget including bi-weekly payment options to match the customer’s payday cycle and iv) focuses on customer service at each stage of the process.
KBRA applied its U.S. Auto Loan ABS methodology as part of its analysis of the transaction’s underlying collateral pool, the proposed capital structure and J.D. 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.
For complete details on the analysis, please see KBRA’s Pre-Sale Report, CarNow Auto Receivables Trust 2015-1 Pre-Sale Report, which was published today at www.kbra.com.
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Preliminary Ratings Assigned: CarNow Auto Receivables Trust 2015-1 |
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| Class | Rating | Expected Initial Principal Balance | ||||
| A | AA-(sf) | $72,630,000 | ||||
| B | A-(sf) | $22,640,000 | ||||
| C | BBB-(sf) | $19,920,000 | ||||
| D | BB(sf) | $7,420,000 | ||||
| E | B(sf) | $8,590,000 | ||||
Related Publications:
U.S.
Auto Loan ABS Rating Methodology
About Kroll Bond Rating Agency
KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).
