KBRA Assigns Preliminary Ratings to GLS Auto Select Receivables Issuer Trust 2026-3

NEW YORK--(BUSINESS WIRE)--KBRA assigns preliminary ratings to five classes of notes issued by GLS Auto Select Receivables Issuer Trust 2026-3 ("GSAR 2026-3"), an auto loan ABS transaction.

GSAR 2026-3 represents the 12^th near prime term ABS securitization for Global Lending Services LLC (“GLS” or the “Company”), and the third near-prime public securitization of 2026. Since 2014, the Company has also issued 35 securitizations under its GCAR program, collateralized by mostly subprime auto loans. GSAR 2026-3 will issue five classes of notes totaling $257.08 million, 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 consists of overcollateralization, subordination of junior note classes (except for the Class D notes), a cash reserve account, and excess spread.

GLS is an auto finance company founded in 2011 and is majority-owned by affiliates of Sixth Street Partners, LLC, a global investment firm. Based on financials provided by the Company, GLS has been profitable since 2017. Based on unaudited financials, the Company reported net income of approximately $114.9 million for Q1 2026. As of March 31, 2026, the Company had total assets of approximately $12.0 billion, and total members’ equity of $1.3 billion.

KBRA applied its Auto Loan ABS Global Rating Methodology as well as its Global Structured Finance Counterparty 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.

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Methodologies

• ABS: Auto Loan ABS Global Rating Methodology
• Structured Finance: Global Structured Finance Counterparty 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: 1015857