KBRA Assigns Preliminary Ratings to Tricolor Auto Securitization Trust 2025-1

NEW YORK--(BUSINESS WIRE)--KBRA assigns preliminary ratings to five classes of notes issued by Tricolor Auto Securitization Trust 2025-1 (“TAST 2025-1”), a subprime auto loan ABS transaction. TAST 2025-1 will issue five classes of notes totaling $328.100 million, where credit enhancement consists of overcollateralization, subordination of junior note classes (except for the Class E notes), a cash reserve account, and excess spread. The transaction has initial credit enhancement ranging from 44.50% for the Class A notes to 19.50% for the Class E notes. As of the January 31, 2025, statistical cut-off date, the notes are collateralized by a pool of fixed rate installment automobile loans with a non-zero weighted average FICO score of 614, an average principal balance of $21,381, and a weighted average APR of 16.64%.

TAST 2025-1 represents the eighth rated ABS securitization for Tricolor Auto Acceptance, LLC (“Tricolor” or the “Company”). The Company has closed five unrated securitizations for a total of approximately $545 million as well as seven rated securitizations for a total of approximately $1.48 billion.

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 static pool data and the underlying collateral pool and stressed the capital structure based upon its stress case cash flow assumptions. KBRA considered its operational review of Tricolor, as well as several business updates with the Company since that time. Operative agreements and legal opinions will be reviewed prior to closing.

To access ratings and relevant documents, click here.

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Methodologies

• Structured Finance: Global Structured Finance Counterparty Methodology
• ABS: Auto Loan ABS Global Rating 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), one of the major credit rating agencies (CRA), is a full-service CRA 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 (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

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