KBRA Affirms and Upgrades Ratings from Veros Auto Receivables Trust

KBRA affirms its ratings on six classes of notes and upgrades its ratings on five classes of notes issued from four Veros transactions. KBRA’s analysis indicated that existing credit enhancement for the notes is sufficient to support the revised and affirmed ratings. All of the securities with upgraded ratings experienced increased credit enhancement. The data used for this review is as of the April 2025 distribution date (March 2025 collection period). To date, the securities have received timely interest payments.

In performing its rating review, KBRA utilized its Auto Loan ABS Global Rating Methodology, as well as its Global Structured Finance Counterparty Methodology and ESG Global Rating Methodology. In determining these rating actions, KBRA reviewed the collateral performance to date and projected the remaining loss for the transactions based on current assumptions. The rating actions, along with related deal and tranche performance information, are available in spreadsheet form in the accompanying Veros Auto Receivables Trust Comprehensive Surveillance Dashboard.

Veros Credit LLC (“Veros” or the “Company”) is a privately-owned indirect auto finance company based in California and operating in 27 states. The Company was founded in 1998 as Credit One Corporation and rebranded as Veros Credit LLC in 2010. Veros is majority owned by the Bozorgi family. Based on financials provided by the Company, Veros has been profitable since inception. The Company has four credit facilities from three financial institutions to support its business. The facilities have approximately $161.5 million of undrawn capacity as of March 31, 2025.

Veros originates auto loan contracts on an indirect basis to subprime borrowers for the purchase of used vehicles through applications submitted by mostly independent dealers (86% independent, 14% franchised). As of March 31, 2025, Veros had a loan portfolio with an aggregate outstanding balance of $620.2 million and weighted average Bureau score of 610. Veros’ portfolio has a typical loan size ranging from $10,000 to $35,000, an original loan term of 48 – 72 months and APRs between 12% and 30%. Since the fall of 2022, the Company has originated a percentage of luxury vehicle loans to high net-worth customers. As of March 31, 2025, these originations represented approximately 7.2% of the total loan portfolio.

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