KBRA Gives Preliminary Ratings to DT Auto Owner Trust 2022-2
NEW YORK–(BUSINESS WIRE)–KBRA assigns preliminary ratings to five classes of bonds issued by DT Auto Owner Trust 2022-2 (“DTAOT 2022-2”), an asset-backed securitization secured by a pool of subprime auto loans.
DTAOT 2022-2 will issue five classes of notes totaling $392.82 million, secured by approximately $454 million in subprime auto loans. On the statistical closing date of 03/31/2022, car loans are fixed installment loans, granted to subprime borrowers. The transaction has initial levels of credit enhancement ranging from 53.75% for the Class A Notes to 15.00% for the Class E Notes. The target enhancement levels for the Class A Notes and the category E are respectively 59.75% and 21.00%.
This transaction is the second ABS 2022 securitization issued by DriveTime Automotive Group, Inc. (“DriveTime” or the “Company”). Including the transaction in question, the Company issued 73 securitizations since 1996 totaling approximately $20.7 billion, of which KBRA rated 15.
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 static data of the pool and the underlying collateral pool and has underlined the capital structure according to its cash flow in the event of a crisis. flow assumptions. KBRA reviewed its operational review of DriveTime, as well as several business updates with the company since then. Operational agreements and legal opinions will be reviewed prior to closing.
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.
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.