NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to five classes of notes issued by Tidewater Auto Receivables Trust 2016-A (TMCAT 2016-A), an auto loan ABS transaction.
TMCAT 2016-A is collateralized by approximately $143.9 million of subprime auto loan receivables as of January 31, 2016 out of an expected collateral balance of approximately $173.9 million after completion of the prefunding period. The transaction includes a prefunding feature that allows up to $30 million or 17.2% of the collateral pool to be funded after closing. The prefunding period is five months. The preliminary ratings reflect the initial credit enhancement levels of 51.25% for the Class A notes, 40.80% for the Class B notes, 27.50% for the Class C notes, 15.90% for the Class D notes and 11.60% for the Class E notes. Credit enhancement consists of overcollateralization, subordination of junior notes, cash reserves and excess spread. This transaction is Tidewater’s first securitization in 2016 and its sixth securitization overall.
Tidewater Finance Company is a privately held consumer finance company that was established in 1992 to originate and service retail installment contracts. Tidewater has an experienced, capable management team that has significant experience in all aspect of consumer lending. Senior members of Tidewater have diverse backgrounds, with experience in motor credit originations and underwriting, consumer risk, servicing/collections, dealer relations, marketing, and corporate finance.
Tidewater is an experienced servicer of subprime consumer receivables and operates collections and servicing in its Virginia Beach, VA office and its Henderson, NV servicing center.
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 Tidewaters’ 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.
For complete details on the analysis, please see KBRA’s Pre-Sale Report, Tidewater Auto Receivables Trust 2016-A Pre-Sale Report, which was published today at www.kbra.com.
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Preliminary Ratings Assigned: Tidewater Auto Receivables Trust 2016-A |
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| Class | Rating | Initial Principal Balance | |||||||||||
| A-1 | K1+(sf) | $26,300,000 | |||||||||||
| A-2 | AAA(sf) | $61,110,000 | |||||||||||
| B | AA(sf) | $18,178,000 | |||||||||||
| C | A+(sf) | $23,135,000 | |||||||||||
| D | BBB(sf) | $20,179,000 | |||||||||||
| E | BB+(sf) | $7,480,000 | |||||||||||
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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).
