KBRA Assigns Preliminary Ratings to Motor Securities 2023-1 DAC

LONDON--(BUSINESS WIRE)--KBRA UK (KBRA) assigns preliminary ratings to Motor Securities 2023-1 DAC (Motor 2023-1), a £822.6 million synthetic securitisation of United Kingdom prime auto secured by conditional sale (CS) and personal contract purchase (PCP) agreements (the Reference Obligations) originated by Santander Consumer (UK) PLC (SCUK). KBRA has assigned preliminary ratings to four tranches of the reference portfolio and one class of credit linked notes (CLN) which reference the corresponding tranche of the reference portfolio.

As of the portfolio pool cut-off date of 31 October 2023, the Reference Obligations consists of 26,462 prime auto CS agreements and 62,724 PCP agreements extended to obligors in the United Kingdom (UK) by SCUK. The outstanding balance of the receivables is £822.6 million, of which 34.5% are CS agreements and 65.5% are PCP agreements. The Reference Obligations are secured by both new (9.8%) and used (90.2%) vehicles.

The transaction will revolve for a maximum of one year during which period the composition of the Reference Portfolio will be limited by defined portfolio guidelines and eligibility criteria. Following the end of the revolving period, and in the absence of a breach of a subordination event, the transaction will amortise on a pro-rata basis.

To access ratings and relevant documents, click here.
Click here to view the report.

Related Publications

• Auto Loan ABS Global Rating Methodology
• General Global Rating Methodology for Asset Backed Securities
• Global Structured Finance Counterparty Methodology
• ESG Global Rating Methodology

Disclosures

Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

This credit rating is endorsed by Kroll Bond Rating Agency Europe Limited for use in the European Union. Information on a credit rating’s endorsement status is available on its rating page at KBRA.com.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

There are certain issuers, entities or transactions rated by KBRA Europe or KBRA UK that may be or have relationships with Shareholders and/or Shareholder-Related Companies, as that term is defined in KBRA’s Shareholder and Shareholder Related Companies for KBRA Europe and KBRA UK Policy and Procedure. Relevant disclosure information may be found here.

About KBRA UK

Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. 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. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider. Kroll Bond Rating Agency UK is located at 1 Connaught Place, 2nd Floor London, England.