KBRA Assigns Preliminary Ratings to SAFCO Auto Receivables Trust 2025-1
29 Apr 2025 | New York
KBRA assigns preliminary ratings to five classes of notes totaling to $200.00 million issued by SAFCO Auto Receivables Trust 2025-1 (“SAFCO 2025-1” or the “Issuer”), a subprime auto loan ABS transaction. Credit enhancement on the notes is comprised of overcollateralization, subordination of junior note classes, a cash reserve account, and excess spread.
SAFCO 2025-1 is the third ABS securitization for Southern Auto Finance Company, LLC (“SAFCO” or the “Company”). The Company issued their inaugural ABS securitization in November 2022. SAFCO is an indirect auto finance company founded in 1990 and headquartered in Pompano Beach, Florida. SAFCO specializes in auto financing for first-time buyers, as well as consumers seeking to rebuild credit and those with hard to verify incomes.
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 transaction’s underlying collateral pool, the proposed capital structure, and SAFCO’s historical static pool data. KBRA considered its operational review of SAFCO as well as periodic due diligence calls with the Company. Operative agreements and legal opinions will be reviewed prior to closing.
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