NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to five classes of notes issued by DriveTime Auto Owner Trust (DTAOT 2017-4), an auto loan ABS transaction. The expected closing date for the transaction is November 15, 2017.
DTAOT 2017-4 will issue $456.23 million of notes collateralized by approximately $570.29 million of subprime auto loan receivables. The preliminary ratings reflect the initial credit enhancement levels ranging from 67.50% for the Class A notes to 21.50% for the Class E notes, which build to 72.10% and 26.10% for the Class A and Class E notes, respectively.
This transaction represents the fourth term ABS securitization in 2017 for DriveTime Automotive Group, Inc. (“DriveTime” or the “Company”). This is the eighth securitization that Kroll Bond Rating Agency (“KBRA”) has rated for DriveTime.
DriveTime is a leading used vehicle retailer in the United States that focuses on both the sale and financing of vehicles within the subprime market. DriveTime’s business model consists of vehicle acquisition, reconditioning, sales, underwriting, financing, loan servicing and after-sale support. As of June 30, 2017, DriveTime owned and operated 27 inspection / reconditioning centers, 142 dealerships in 27 states and 3 loan-servicing centers.
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 DriveTime’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.
Preliminary Ratings Assigned: DriveTime Auto Owner Trust 2017-4
Expected Initial Principal
Representations & Warranties Disclosure
All Nationally Recognized Statistical Rating Organizations are required, pursuant to SEC Rule 17g-7, to provide a description of a transaction’s representations, warranties and enforcement mechanisms that are available to investors when issuing credit ratings. KBRA’s disclosure for this transaction can be found in the report entitled DriveTime Auto Owner Trust 2017-4 Representations and Warranties Disclosure
Related Publications: (available at www.kbra.com)
About Kroll Bond Rating Agency
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