NEW YORK--()--Kroll Bond Rating Agency (KBRA) assigns final ratings to four classes of United Auto Credit Securitization Trust 2012-1, a subprime auto ABS transaction. Concurrently we have withdrawn our preliminary ratings on the certificates, which were assigned on September 18, 2012.
UACST 2012-1 is collateralized by approximately $195 million of subprime auto loan receivables. The ratings reflect the initial credit enhancement levels ranging from 35.60% for the Class A notes to 7.65% for the Class D notes, which build to 41.45% and 13.50% for the Class A and Class D notes, respectively. The transaction also includes a quarterly cumulative new loss trigger which, if breached, would increase the targeted credit enhancement to 47.70% for the Class A notes and 19.75% for the Class D notes.
KBRA applied its U.S. Auto Loan ABS methodology as part of its analysis of the transaction’s underlying collateral pool, the proposed capital structure and UACC’s historical static pool data. KBRA also conducted an operational assessment of UACC, as well as a review of the transaction’s legal structure and transaction documents. KBRA also reviewed the operative agreements and legal opinions for the transaction.
Final Ratings Assigned: United Auto Credit Securitization Trust 2012-1
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U.S. Auto Loan ABS Rating Methodology
About Kroll Bond Rating Agency
KBRA was established in 2010 by Jules Kroll to restore trust in credit ratings by creating new standards for assessing risk and by offering accurate, clear and transparent ratings. KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).