KBRA Upgrades and Affirms Ratings from Tricolor Auto Securitization Trusts

KBRA upgrades its ratings on 13 classes of notes and affirms its ratings on 11 classes of notes issued from five Tricolor Auto Securitization Trust (“TAST”) 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 2024 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 Tricolor Auto Securitization Trust Comprehensive Surveillance Dashboard. TAST 2025-1 closed on March 20, 2025, and was not included in this review.

The loans supporting the TAST transactions were originated by Tricolor Auto Acceptance, LLC (“Tricolor” or the “Company”). Tricolor is a “buy here-pay here" auto finance company that focuses on the underserved Hispanic market, serving consumers who are typically unable to obtain financing from traditional lending sources such as credit unions, banks, and captive auto finance companies. As of April 30, 2025, Tricolor operated a total of 65 dealerships with majority of them located in Texas and California. The dealerships in different states operate under either Tricolor, GanasYa! or Ganas Auto Group.

Tricolor is a wholly-owned indirect subsidiary of Tricolor Holdings, LLC. The Company’s founder and CEO, Daniel Chu, owns 27.5% of the Company, while the remaining 72.5% is owned by a large institutional investor as well as high net-worth individuals and family offices.

Tricolor is a privately held company. KBRA has reviewed the Company’s audited financial statements for 2023 and 2024. The Company has generated positive net income in 2023 through 2024. The Company has a total of $1.14 billion in funding capacity with approximately $1.01 billion outstanding ($127 million available) as of January 31, 2025.

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Methodologies