Kroll Bond Rating Agency Assigns Preliminary Ratings to GO Financial Auto Securitization Trust 2015-2

NEW YORK--()--Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to three classes of notes issued by GO Financial Auto Securitization Trust 2015-2 (GOFAST 2015-2), an auto loan ABS transaction.

GOFAST 2015-2 will issue notes collateralized by approximately $239 million of subprime auto loan receivables as of October 31, 2015. The preliminary ratings reflect the initial credit enhancement levels of 31.25% overcollateralization (building to 41.25% and subject to a 3.25% floor), subordination of junior note classes (18.50% for the Class A notes and 8.00% for the Class B notes), a 1.50% non-declining cash reserve account, and excess spread. The transaction has initial hard credit enhancement levels of 51.25% for the Class A notes, 40.75% for the Class B notes and 32.75% for the Class C notes. The target enhancement levels for the Class A notes through Class C notes are 61.25%, 50.75% and 42.75%, respectively.

This transaction represents GO Financial’s second term ABS securitization. GFC Lending, LLC d/b/a GO Financial (GO Financial) is an indirect subprime auto lender that provides financing to third-party automobile dealers. GO Financial was founded under DriveTime Automotive Group, Inc. (“DriveTime”) in December 2011 and is led by an experienced management team. GO Financial benefits from strong ownership by DriveTime and Manheim Partner Holdings which is part of the Cox Automotive Group.

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 GO Financial’s 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, GO Financial Auto Securitization Trust 2015-2 Presale Report, which was published today at www.kbra.com.

Preliminary Ratings Assigned: GO Financial Auto Securitization Trust 2015-2

 
Class       Preliminary Rating       Expected Initial Principal Balance
A       A(sf)       $120,310,000
B       BBB(sf)       $25,140,000
C       BB(sf)       $19,150,000
 

Related Publications: (available at www.kbra.com)

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).

Contacts

Analytical:
Kroll Bond Rating Agency
Eric Neglia, 646-731-2456
Senior Director
eneglia@kbra.com
or
David Shin, 646-731-2459
Senior Analyst
dshin@kbra.com
or
Rosemary Kelley, 646-731-2337
Managing Director
rkelley@kbra.com
or
Follow us on Twitter!
@KrollBondRating

Contacts

Analytical:
Kroll Bond Rating Agency
Eric Neglia, 646-731-2456
Senior Director
eneglia@kbra.com
or
David Shin, 646-731-2459
Senior Analyst
dshin@kbra.com
or
Rosemary Kelley, 646-731-2337
Managing Director
rkelley@kbra.com
or
Follow us on Twitter!
@KrollBondRating