NEW YORK–(BUSINESS WIRE)–#creditratingagency–KBRA assigns preliminary ratings to five classes of notes issued by American Credit Acceptance Receivables Trust 2025-2 (“ACAR 2025-2”), an ABS collateralized by a pool of auto loans.
ACAR 2025-2 will issue five classes of notes totaling $437.2 million. The ratings reflect initial credit enhancement of 63.35% for the Class A notes through 15.80% 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 second ABS securitization in 2025 for American Credit Acceptance, LLC (“ACA” or the “Company”). The Company has issued 50 securitizations since 2011 for a total amount of approximately $15.5 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 March 31, 2025, ACA has a managed serviced portfolio of approximately $5.8 billion. Based on financials provided by the Company, ACA has been profitable since 2009. The Company generated positive net income for 2024, however this was lower than the comparative period in 2023 due to an increase in loan loss reserve provision.
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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: 1008877
Contacts
Analytical Contacts
Brockton Bowers, Associate (Lead Analyst)
+1 646-731-2418
[email protected]
Rahel Avigdor, Managing Director
+1 646-731-1203
[email protected]
Dan DePaulo, Senior Analyst
+1 646-731-1259
[email protected]
Melvin Zhou, Managing Director (Rating Committee Chair)
+1 646-731-2412
[email protected]
Business Development Contact
Arielle Smelkinson, Senior Director
+1 646-731-2369
[email protected]
