KBRA Assigns Preliminary Ratings to American Credit Acceptance Receivables Trust 2024-2
KBRA has issued preliminary ratings to five classes of notes offered by American Credit Acceptance Receivables Trust 2024-2 (“ACAR 2024-2”), an asset-backed security collateralized by a pool of auto loans.
ACAR 2024-2 is set to issue five classes of notes totaling $442.04 million. The assigned ratings reflect initial credit enhancement ranging from 63.25% for the Class A notes to 16.80% for the Class E notes. Credit enhancement will include overcollateralization, subordination of the junior note classes (excluding the Class E note), a cash reserve account, and excess spread.
This transaction marks the second ABS securitization in 2024 for American Credit Acceptance, LLC (“ACA” or the “Company”). Since its inaugural securitization in October 2011, the Company has issued 45 additional transactions, totaling approximately $13.4 billion.
KBRA conducted a comprehensive analysis utilizing its Auto Loan ABS Global Rating Methodology, along with its Global Structured Finance Counterparty Methodology and ESG Global Rating Methodology. This analysis encompassed an assessment of the transaction’s underlying collateral pool, the proposed capital structure, and ACA’s historical static pool data. Additionally, KBRA performed an operational assessment on the originator and servicer, as well as a review of the transaction’s legal structure and documents. Operative agreements and legal opinions will be subject to further review prior to closing.
For access to rating and relevant documents, please click here.
To view the report, click here.
Methodologies utilized include:
ABS: Auto Loan ABS Global Rating Methodology Structured Finance: Global Structured Finance Counterparty Methodology ESG Global Rating Methodology For further disclosures and information on key credit considerations, sensitivity analyses, and ESG factors, please refer to the full rating report referenced above.
For comprehensive information on KBRA policies, methodologies, rating scales, and disclosures, visit 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, and Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. KBRA is designated as a designated rating organization by the Ontario Securities Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider.
