KBRA Assigns Preliminary Ratings to GLS Auto Receivables Issuer Trust 2022-2

NEW YORK–(BUSINESS WIRE)–KBRA assigns preliminary ratings to six categories of bonds issued by GLS Auto Receivables Issuer Trust 2022-2 (“GCAR 2022-2”), an ABS auto loan transaction.

GCAR 2022-2 represents the second ABS term securitization for Global Lending Services, LLC (“GLS” or the “Company”) in 2022 and the twentieth overall. GCAR 2022-2 will issue six classes of notes totaling $694.36 million secured by a pool of retail automobile contracts, entered into with subprime debtors and secured by new and used automobiles.

GLS is a subprime auto finance company founded in 2011 and majority owned by Assured Investment Management LLC (“Assured”), an alternative asset manager owned by funds managed by Assured Guaranty Ltd, an insurance company. Assured (formerly BlueMountain Capital Management) has invested $135 million since inception. Based on financial data provided by the company, GLS has been profitable since 2017. As of March 31, 2022, the company reported positive net income of $45.281 million year-to-date, total assets of approximately 4 .7 billion, a total equity of 363.9 dollars. million and a total outstanding portfolio balance of $4.32 billion.

KBRA applied its global ABS rating methodology for auto loans as well as its global structured financial counterparty methodology and its global ESG rating methodology as part of its analysis of the transaction’s underlying collateral pool, capital structure proposed and historical data from the GLS static pool. KBRA reviewed its review of GLS’s operations, as well as periodic due diligence calls with GLS. Operational agreements and legal opinions will be reviewed prior to closing.

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Disclosures

Further information on key credit considerations, sensitivity analyzes that consider factors that may affect these credit ratings and how they could lead to an upgrade or downgrade, and ESG factors (where they are a key factor in changing the credit rating or rating outlook) can be viewed in the full rating report mentioned above.

A description of all substantially significant sources that were used to prepare the credit rating and information on the methodology(ies) (including all significant models and sensitivity analyzes of the main relevant rating assumptions, the where applicable) used to determine the credit rating are available in the information disclosure form(s) located here.

Information on the meaning of each rating category can be found here.

Additional information relating to this rating metric is available in the information disclosure form(s) referenced above. Additional information regarding KBRA’s policies, methodologies, grading scales and disclosures is available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the United States Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a rating agency with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a rating agency with the UK Financial Conduct Authority under the temporary registration scheme. In addition, KBRA is designated as the Designated Rating Agency 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.

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