KBRA Assigns Preliminary Ratings to Lendbuzz Securitization Trust 2025-1

NEW YORK--(BUSINESS WIRE)--KBRA assigns preliminary ratings to four classes of notes issued by Lendbuzz Securitization Trust 2025-1 (“LBZZ 2025-1”), an auto loan ABS transaction. The preliminary ratings reflect the initial credit enhancement levels ranging from 22.20% for the Class A notes to 5.75% for the Class C notes. Credit enhancement on the notes is comprised of overcollateralization, subordination of junior note classes (except for the Class C notes), a cash reserve account funded at closing, and excess spread.

LBZZ 2025-1 is Lendbuzz Funding LLC’s (“Lendbuzz” or the “Company”) first term ABS securitization in 2025 and the ninth overall. LBZZ 2025-1 will issue four classes of notes totaling $261.9 million. At closing, this transaction will consist of approximately $250.0 million receivables, with an expected collateral balance of $275.0 million after completion of the one-month prefunding period. LBZZ 2025-1 will be collateralized by a pool of retail automobile contracts made to obligors and secured by new and used automobiles, light duty trucks, and vans.

Lendbuzz is a car financing company established in 2015, headquartered in Boston, MA, with a research division based in Tel Aviv, Israel. The Company’s founders launched the company after migrating to the U.S. for graduate school and finding that they could not access basic credit products because of a lack of credit history. Using alternative data and machine-learning algorithms to assess credit risk, Lendbuzz services a target consumer base that is typically unable to obtain financing from traditional lending sources such as credit unions, banks, and captive auto finance companies, despite sufficient verifiable income to support auto loan payments.

KBRA applied its Auto Loan ABS Global Rating Methodology, as well as its Global Structured Finance Counterparty Methodology and ESG Global Rating Methodology, as part of its analysis of the transaction’s underlying collateral pool, the proposed capital structure, and Lendbuzz’s historical static pool data. KBRA considered its operational review of the Company, as well as periodic update calls with Lendbuzz. Operative agreements and legal opinions will be reviewed prior to closing.

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Methodologies

• ABS: Auto Loan ABS Global Rating Methodology
• Structured Finance: 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.

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.

About KBRA

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.

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