KBRA Assigns Preliminary Ratings to Bridgecrest Lending Auto Securitization Trust 2024-3

KBRA assigns preliminary ratings to five classes of notes issued by Bridgecrest Lending Auto Securitization Trust 2024-3 (“BLAST 2024-3”), an asset-backed securitization collateralized by a pool of sub-prime auto loans.

BLAST 2024-3 will issue notes using one of two capital structures, which will be determined at the time of pricing. These include a Base Structure and an Upsize Structure, with aggregate initial note balances of $573,750,000 and $680,000,000 respectively. The collateral pools for each structure are as of June 30, 2024 (“Cutoff Date”) and are similar in quality and composition. Both pools are collateralized by sub-prime auto loans that are fixed rate installment loans, made to subprime borrowers. The transaction has initial credit enhancement levels ranging from 59.50% for the Class A notes, to 16.50% for the Class E notes.

This transaction is the fourth public, SEC-registered offering of Bridgecrest Acceptance Corporation (“Bridgecrest”) serviced auto loans originated by DriveTime Automotive Group, Inc. (together with Bridgecrest, “DriveTime” or the “Company”). Inclusive of the subject transaction, the Company has issued 83 securitizations since 1996 totaling approximately $23.7 billion, of which KBRA has rated 20.

KBRA applied its Auto Loan ABS Global Rating Methodology, as well as its Global Structured Finance Counterparty Methodology and ESG Global Rating Methodology as part of its analysis of the static pool data and the underlying collateral pool and stressed the capital structure based upon its stress case cash flow assumptions. KBRA considered its operational review of DriveTime, as well as several business updates with the Company since that time. Operative agreements and legal opinions will be reviewed prior to closing.

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Methodologies