KBRA Assigns Preliminary Ratings to GLS Auto Select Receivables Issuer Trust 2025-3

NEW YORK--(BUSINESS WIRE)--KBRA assigns preliminary ratings to four classes of notes (five tranches) issued by GLS Auto Select Receivables Issuer Trust 2025-3 ("GSAR 2025-3"), an auto loan ABS transaction.

GSAR 2025-3 represents the eighth near prime term ABS securitization for Global Lending Services LLC (“GLS” or the “Company”), and the second near-prime public securitization of 2025. Since 2014, the Company has also issued 31 securitizations under its GCAR program, collateralized by mostly subprime auto loans. GSAR 2025-3 will issue four classes of notes (five tranches) totaling $242.3 collateralized by a pool of retail automobile contracts, made to near prime obligors and secured by new and used automobiles. Credit enhancement on the notes is composed of overcollateralization, subordination of junior note classes, a cash reserve account, and excess spread.

GLS is an auto finance company that was founded in 2011 and is majority-owned by funds managed by Sound Point Capital Management L.P. (“Sound Point”), an alternative asset manager. Funds managed by Sound Point and legacy funds formerly managed by BlueMountain Capital Management have invested $135 million since inception. Based on financials provided by the Company, GLS has been profitable since 2017. As of March 31, 2025 the Company reported positive unaudited year-to-date net income of approximately $108.0 million, had total assets of approximately $8.26 billion, total members’ equity of $165.4 million, loss absorbing capital of approximately $697.3 million, and an aggregate managed portfolio balance of $8.3 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 transaction’s underlying collateral pool, the proposed capital structure, and GLS’s historical static pool data. KBRA considered its operation review of GLS, as well as periodic due diligence calls with GLS. Operative agreements and legal opinions will be reviewed prior to closing.

To access ratings and relevant documents, click here.

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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), 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.

Doc ID: 1010099