NEW YORK--(BUSINESS WIRE)--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
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