KBRA Assigns Preliminary Ratings to American Credit Acceptance Receivables Trust 2025-4

NEW YORK--(BUSINESS WIRE)--KBRA assigns preliminary ratings to five classes of notes issued by American Credit Acceptance Receivables Trust 2025-4 (“ACAR 2025-4”), an ABS transaction collateralized by a pool of auto loans.

ACAR 2025-4 will issue five classes of notes totaling $549.3 million. The ratings reflect initial credit enhancement of 61.10% for the Class A notes through 16.50% for the Class E notes. Credit enhancement will consist of overcollateralization, subordination of the junior note classes (except for the Class E note), a cash reserve account, and excess spread.

This transaction represents the fourth ABS securitization in 2025 for American Credit Acceptance, LLC (“ACA” or the “Company”). The Company has issued 52 securitizations since 2011 for a total amount of approximately $16.3 billion.

ACA is a privately held subprime auto finance company that has been under current ownership since 2007. The Company is an independent auto loan originator operating in all 50 states. As of August 31, 2025, ACA has a managed serviced portfolio of approximately $6.5 billion, inclusive of certain portfolio purchases of ACA. Based on financials provided by the Company, ACA has been profitable since 2009.

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 ACA’s historical static pool data. KBRA considered its operational review of ACA, as well as periodic due diligence calls with ACA. Operative agreements and legal opinions will be reviewed prior to closing.

To access ratings and relevant documents, click here.

Click here to view the report.

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: 1011594