KBRA Affirms and Upgrades Ratings from Lendbuzz Securitization Trusts

KBRA affirms its ratings on 13 classes of notes and upgrades its ratings on three classes of notes issued from six Lendbuzz Securitization Trust (“LBZZ”) transactions. KBRA’s analysis indicated that existing credit enhancement for the notes is sufficient to support the revised and affirmed ratings. All the securities with upgraded ratings experienced increased credit enhancement. The data used for this review is as of the March 2025 distribution date (February 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 Lendbuzz Securitization Trust Comprehensive Surveillance Dashboard. LBZZ 2024-3 and LBZZ 2025-1 closed in September 2024 and January 2025, respectively and were not included in this review.

Lendbuzz was founded in 2015 as a wholly owned subsidiary of Lendbuzz Inc, a Delaware corporation established in 2015. The Company is headquartered in Boston, MA, and is a licensed direct auto loan originator currently operating in 32 states across the United States. As of December 31, 2024, Lendbuzz has an aggregate outstanding serviced portfolio of approximately $2.35 billion and members’ equity of approximately $232.4 million. The Company generated net income of approximately $22.8 million in 2024. The Company has historically demonstrated the ability to secure and renew liquidity facilities from multiple lenders with staggered maturity dates. As of December 31, 2024, Lendbuzz had drawn approximately $300.0 million of $1.2 billion in funding capacity from five warehouse lines.

Lendbuzz’s founders launched the Company after migrating to the U.S. for graduate school and finding that they could not access basic credit products because of lack of credit history. The Company’s target consumer is typically unable to obtain financing from traditional lending sources such as credit unions, banks, and captive auto finance companies, despite sufficient verifiable income to support auto loan payments. Lendbuzz’s obligors may have limited or no U.S. credit history and may be immigrants with an unverified immigration status.

The related transactions are listed further below with links to the appropriate page on kbra.com which show the applicable resulting ratings.

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For additional information regarding a specific transaction, see the list below to access ratings, reports, and disclosures:

Methodologies