KBRA Assigns Preliminary Ratings to Bridgecrest Lending Auto Securitization Trust 2024-3
July 11 2024 - 12:58PM
Business Wire
KBRA assigns preliminary ratings to five classes of notes issued
by Bridgecrest Lending Auto Securitization Trust 2024-3 (“BLAST
2024-3”), an asset-backed securitization collateralized by a pool
of sub-prime auto loans.
BLAST 2024-3 will issue notes using one of two capital
structures, which will be determined at the time of pricing. These
include a Base Structure and an Upsize Structure, with aggregate
initial note balances of $573,750,000 and $680,000,000
respectively. The collateral pools for each structure are as of
June 30, 2024 (“Cutoff Date”) and are similar in quality and
composition. Both pools are collateralized by sub-prime auto loans
that are fixed rate installment loans, made to subprime borrowers.
The transaction has initial credit enhancement levels ranging from
59.50% for the Class A notes, to 16.50% for the Class E notes.
This transaction is the fourth public, SEC-registered offering
of Bridgecrest Acceptance Corporation (“Bridgecrest”) serviced auto
loans originated by DriveTime Automotive Group, Inc. (together with
Bridgecrest, “DriveTime” or the “Company”). Inclusive of the
subject transaction, the Company has issued 83 securitizations
since 1996 totaling approximately $23.7 billion, of which KBRA has
rated 20.
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 DriveTime, 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 rating 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) 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.
Doc ID: 1005045
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Analytical Contacts
Maxim Berger, Director (Lead Analyst) +1 646-731-1260
maxim.berger@kbra.com
Zarif Ahmed, Associate Director +1 646-731-1367
zarif.ahmed@kbra.com
Kevin Brown, Director +1 646-731-1349 kevin.brown@kbra.com
Eric Neglia, Head of Commercial and Consumer ABS (Rating
Committee Chair) +1 646-731-2456 eric.neglia@kbra.com
Business Development Contact
Arielle Smelkinson, Senior Director +1 646-731-2369
arielle.smelkinson@kbra.com