NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to four classes of notes for Veros Auto Receivables Trust 2018-1 (“VEROS 2018-1”), an auto loan ABS transaction.
Veros Credit LLC will issue four classes of notes for the VEROS 2018-1 transaction totaling $183.060 million that are collateralized by a trust certificate backed by a pool of subprime automobile loan contracts, secured mostly by used vehicles. Veros Credit LLC is a California based automobile finance company that was founded in 1998 as Credit One Corporation and rebranded as Veros Credit in 2010. Veros originates auto loan contracts to subprime borrowers for the purchase of used vehicles through applications submitted by mostly (98%) independent dealers.
The final ratings reflect the initial credit enhancement levels of 42.25% for the Class A notes, 33.00% for the Class B notes, 22.50% for the Class C notes and 9.75% for the Class D notes. Credit enhancement for the notes consists of the reserve account, overcollateralization, excess interest on the receivables and subordination (except for the Class D notes.)
KBRA applied its Global Auto Loan ABS methodology as part of its analysis of the transaction’s underlying collateral pool, the proposed capital structure and Veros’ 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.
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Preliminary Ratings Assigned: Veros Auto Receivables Trust 2018-1 |
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| Class | Preliminary Rating | Initial Principal Balance | |||||
| A | AA (sf) | $118,570000 | |||||
| B | A (sf) | $18,350,000 | |||||
| C | BBB (sf) | $20,840,000 | |||||
| D | BB (sf) | $25,300,000 | |||||
To access ratings, reports and disclosures, click here.
Related Publication: (available at www.kbra.com)
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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, is 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.
