Press Release|ABS
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KBRA Places All Outstanding TAST Ratings on Watch Downgrade

10 Sep 2025   |   New York

Contacts

KBRA has placed all 34 outstanding ratings from seven Tricolor Auto Securitization Trust transactions on Watch Downgrade following Tricolor Holdings, LLC filing a Chapter 7 petition on September 10, 2025. Included in the filing are Tricolor Auto Acceptance, LLC (“Tricolor” or the “Company”) and Tricolor Auto Receivables 2 LLC. Tricolor was the originator for the loans in these auto ABS transactions and Tricolor serves as the transaction servicer, with Vervent, Inc. designated as back-up servicer. Tricolor Auto Receivables 2 LLC is the depositor.

KBRA has made attempts to reach the Company but has not been able to make contact.

Per the transaction documents, the commencement by the Servicer of voluntary bankruptcy is a servicer termination event. The servicing transfer and related operational transitions, including a debt validation period, may have a negative impact on the performance of the transactions.

The table below displays the current capital structures and the Watch Placements undertaken in this review. To date, the securities have received timely interest payments.

E 21,160 4,176 19.73% 7.79% 23.80% 98.89% BB (sf) AAA (sf) AAA (sf) / Watch Downgrade -- F 12,820 12,820 100.00% 9.80% 18.80% 55.52% B+ (sf) A+ (sf) A+ (sf) / Watch Downgrade -- D 23,790 13,231 55.61% 8.56% 35.55% 85.81% BBB (sf) AAA (sf) AAA (sf) / Watch Downgrade -- E 19,450 19,450 100.00% 13.45% 28.80% 54.84% BB (sf) A (sf) A (sf) / Watch Downgrade -- F 14,410 14,410 100.00% 16.00% 23.80% 31.89% B+ (sf) BB (sf) BB (sf) / Watch Downgrade -- A 179,760 17,486 9.73% 6.61% 50.65% 91.76% AAA (sf) AAA (sf) AAA (sf) / Watch Downgrade -- B 14,670 14,670 100.00% 6.53% 46.50% 81.84% AA- (sf) AA+ (sf) AA+ (sf) / Watch Downgrade -- C 7,070 7,070 100.00% 6.99% 44.50% 77.06% A (sf) AA- (sf) AA- (sf) / Watch Downgrade -- D 22,090 22,090 100.00% 8.61% 38.25% 62.12% BBB (sf) A (sf) A (sf) / Watch Downgrade -- E 19,450 19,450 100.00% 11.91% 32.75% 48.96% BB (sf) BBB- (sf) BBB- (sf) / Watch Downgrade -- F 28,280 28,280 100.00% 17.99% 24.75% 29.84% B+ (sf) BB- (sf) BB- (sf) / Watch Downgrade -- A 167,680 24,988 14.90% 6.36% 54.60% 89.20% AAA (sf) AAA (sf) AAA (sf) / Watch Downgrade -- B 15,910 15,910 100.00% 6.57% 50.15% 80.44% AA- (sf) AA+ (sf) AA+ (sf) / Watch Downgrade -- C 15,910 15,910 100.00% 6.93% 45.70% 71.69% A (sf) A+ (sf) A+ (sf) / Watch Downgrade -- D 22,520 22,520 100.00% 7.61% 39.40% 59.30% BBB (sf) BBB+ (sf) BBB+ (sf) / Watch Downgrade -- E 27,170 27,170 100.00% 10.44% 31.80% 44.35% BB (sf) BB (sf) BB (sf) / Watch Downgrade -- F 27,520 27,520 100.00% 16.56% 24.10% 29.20% B+ (sf) B+ (sf) B+ (sf) / Watch Downgrade -- A 179,800 60,934 33.89% 5.22% 50.85% 74.62% AAA (sf) AAA (sf) AAA (sf) / Watch Downgrade -- B 15,620 15,620 100.00% 5.36% 46.45% 67.49% AA- (sf) AA- (sf) AA- (sf) / Watch Downgrade -- C 15,620 15,620 100.00% 5.73% 42.05% 60.36% A (sf) A (sf) A (sf) / Watch Downgrade -- D 23,430 23,430 100.00% 6.34% 35.45% 49.66% BBB (sf) BBB (sf) BBB (sf) / Watch Downgrade -- E 26,100 26,100 100.00% 8.64% 28.10% 37.75% BB (sf) BB (sf) BB (sf) / Watch Downgrade -- F 26,980 26,980 100.00% 13.51% 20.50% 25.43% B+ (sf) B+ (sf) B+ (sf) / Watch Downgrade -- A 228,080 164,041 71.92% 4.94% 44.50% 53.11% AAA (sf) AAA (sf) AAA (sf) / Watch Downgrade -- B 20,600 20,600 100.00% 5.18% 39.35% 47.00% AA- (sf) AA- (sf) AA- (sf) / Watch Downgrade -- C 21,210 21,210 100.00% 5.72% 34.05% 40.71% A (sf) A (sf) A (sf) / Watch Downgrade -- D 28,610 28,610 100.00% 6.84% 26.90% 32.22% BBB (sf) BBB (sf) BBB (sf) / Watch Downgrade -- E 29,600 29,600 100.00% 10.37% 19.50% 23.44% BB (sf) BB (sf) BB (sf) / Watch Downgrade -- A 131,090 119,410 91.09% 5.12% 51.70% 54.76% AAA (sf) AAA (sf) AAA (sf) / Watch Downgrade -- B 27,120 27,120 100.00% 5.34% 41.40% 44.14% AA- (sf) AA- (sf) AA- (sf) / Watch Downgrade -- C 13,950 13,950 100.00% 5.43% 36.10% 38.67% A (sf) A (sf) A (sf) / Watch Downgrade -- D 17,110 17,110 100.00% 5.91% 29.60% 31.97% BBB (sf) BBB (sf) BBB (sf) / Watch Downgrade -- E 10,270 10,270 100.00% 8.35% 25.70% 27.94% BB+ (sf) BB+ (sf) BB+ (sf) / Watch Downgrade -- F 17,640 17,640 100.00% 11.23% 19.00% 21.03% B+ (sf) B+ (sf) B+ (sf) / Watch Downgrade -- TAST 2025-1 TAST 2025-2 At Closing TAST 2024-1 Transaction TAST 2023-1 TAST 2022-1 TAST 2024-2 TAST 2024-3 Credit Enhancement KBRA Ratings Class At Closing Current Note Factor Coupon At Closing Current Balance ($'000s) From To Action
Data as of August 2025 Distribution Date
Source: KBRA

Founded in 2007, Tricolor is a “buy here-pay here" auto finance company that focuses on the underserved Hispanic market. Tricolor serves 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 the 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.

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

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

Methodologies

Disclosures

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.

Doc ID: 1011253