Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to five classes of notes issued by DT Auto Owner Trust 2019-4 ("DTAOT 2019-4"), an auto loan ABS transaction.
DTAOT 2019-4 will issue $450.0 million of notes collateralized by approximately $519.7 million of subprime auto loan receivables at closing. The preliminary ratings reflect the initial credit enhancement levels ranging from 60.75% for the Class A notes to 14.90% for the Class E notes, which build to 64.85% and 19.00% for the Class A and Class E notes, respectively.
This transaction represents the fourth term ABS securitization in 2019 for DriveTime Automotive Group, Inc. ("DriveTime" or the "Company"). This is the eleventh securitization that KBRA has rated for DriveTime.
DriveTime is a leading used vehicle retailer in the United States that focuses on both the sale and financing of vehicles within the subprime market. DriveTime's business model consists of vehicle acquisition, reconditioning, sales, underwriting, financing, loan servicing and after-sale support. As of June 30, 2019, DriveTime owned and operated 20 inspection/ reconditioning centers, 138 dealerships in 26 states.
KBRA applied its Global Auto Loan ABS Methodology and Global Structured Finance Counterparty Methodology as part of its analysis of the transaction's underlying collateral pool, the proposed capital structure and DriveTime's historical static pool data. KBRA also conducted an operational assessment on the originator and servicer, as well as a review of the transaction's legal structure and transaction documents. KBRA will review the operative agreements and legal opinions for the transaction prior to closing.
Preliminary Ratings Assigned: DT Auto Owner Trust 2019-4
Class |
Preliminary Rating |
Principal Balance |
A |
AAA (sf) |
$211,760,000 |
B |
AA (sf) |
$54,560,000 |
C |
A (sf) |
$77,950,000 |
D |
BBB- (sf) |
$70,150,000 |
E |
BB- (sf) |
$35,580,000 |
To access ratings, reports and disclosures, click here.
Related Publications: (available at www.kbra.com)
- DT Auto Owner Trust 2019-4 Pre-Sale Report
- DT Auto Owner Trust 2019-4 KCAT
- Global Auto Loan ABS Rating Methodology
- Global Structured Finance Counterparty Methodology
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About KBRA and KBRA Europe
KBRA is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is designated as a designated rating organization 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, and is a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.
View source version on businesswire.com: https://www.businesswire.com/news/home/20191017005832/en/
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