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KBRA Revises Two CNART Watch Developing Placements to Watch Downgrade; Maintains Watch Placements on Six Ratings; Downgrades and Maintains Watch Downgrade on One Rating

14 Nov 2025   |   New York

Contacts

KBRA revises two Watch Developing placements to Watch Downgrade, maintains Watch placements and downgrades one rating while maintaining its Watch Downgrade placements across four CarNow Auto Receivables Trust (“CNART”) transactions (see table).

The ratings on the outstanding classes of CNART 2022-1 and CNART 2023-1 were previously placed on Watch Downgrade following notice of the expected servicing transfer from Byrider Finance, LLC (“Byrider”) to Westlake Portfolio Management, LLC (“WPM”). The transfer was completed on September 1, 2025; however, KBRA maintains the Watch Downgrade placements on all classes and downgrades one class of notes from CNART 2022-1 owing the impact of decreased overcollateralization (“O/C”). Please see "CNART 2022-1 Surveillance Report”.

Previously, five outstanding classes of CNART 2021-2 and CNART 2023-2 were placed on Watch Developing, reflecting KBRA’s concerns regarding the ongoing financial health of the servicer, Byrider. KBRA revises the Watch Developing placement to Watch Downgrade on two ratings from CNART 2023-2 as O/C continues to erode and maintains the Watch Developing for the remaining ratings.

The table below displays the current capital structures and the Watch Placements. To date, the securities have received timely interest payments; however, two classes had previously been lowered to CCC (sf) and one class to CC (sf) from three transactions, due to deteriorating collateral credit performance and decreased overcollateralization. These classes have an increased risk of principal loss and are susceptible to interest shortfalls in the future.

At Closing Current Note Factor Coupon At Closing Current At Closing From To CNART 2021-2 E $12,830 $7,849 61.18% 4.45% 12.00% 50.45% BB (sf) BB+ (sf) / Watch Developing BB+ (sf) / Watch Developing D $17,930 $12,249 68.32% 5.79% 26.85% 31.43% BBB- (sf) BB- (sf) / Watch Downgrade B (sf) / Watch Downgrade E $17,770 $17,770 100.00% 8.29% 15.25% -68.04% BB- (sf) CC (sf) / Watch Downgrade CC (sf) / Watch Downgrade D $20,750 $16,824 81.08% 7.99% 36.80% 55.68% BBB (sf) BBB (sf) Watch Downgrade BBB (sf) / Watch Downgrade E $24,340 $24,340 100.00% 12.04% 23.25% -8.44% BB- (sf) CCC (sf) / Watch Downgrade CCC (sf) / Watch Downgrade B $19,380 $2,823 14.56% 8.53% 54.10% 98.09% AA (sf) AA (sf) / Watch Developing AA (sf) / Watch Developing C $8,080 $8,080 100.00% 9.84% 47.95% 79.97% A- (sf) A- (sf) / Watch Developing A- (sf) / Watch Developing D $13,860 $13,860 100.00% 13.45% 37.40% 48.90% BBB- (sf) BB- (sf) / Watch Developing BB- (sf) / Watch Downgrade E $17,280 $17,280 100.00% 14.07% 24.25% 10.15% BB- (sf) CCC (sf) / Watch Developing CCC (sf) / Watch Downgrade CNART 2022-1 CNART 2023-1 CNART 2023-2 Transaction Class Balance ($'000s) Credit Enhancement KBRA Ratings
Source: KBRA

Byrider, dba CarNow Acceptance Company, operated a used vehicle retailer in the U.S. that focused on both the sale and financing of vehicles to subprime borrowers whose FICO scores are 650 and below. Byrider was founded in 1989 and was acquired by Altamont Capital Partners in May 2011. Byrider’s business model consisted of vehicle acquisition, reconditioning, sales, underwriting, financing, loan servicing and after-sale support. Since September 2024, Byrider no longer originates auto loans.

KBRA will continue to monitor the performance of the transactions and will seek to resolve or update the Watch Placements within 90 days.

Click here to view the report.

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

Methodologies

Disclosures

Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

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