KBRA Assigns Ratings to American Credit Acceptance Receivables Trust 2024-4

KBRA assigns ratings to five classes of notes issued by American Credit Acceptance Receivables Trust 2024-4 (“ACAR 2024-4”), an ABS collateralized by a pool of auto loans.

ACAR 2024-4 issued five classes of notes totaling $507.0 million. The ratings reflect initial credit enhancement of 63.00% for the Class A notes through 16.50% for the Class E notes. Credit enhancement will consist of overcollateralization, subordination of the junior note classes (except for the Class E note), a cash reserve account, and excess spread.

This transaction represents the fourth ABS securitization in 2024 for American Credit Acceptance, LLC (“ACA” or the “Company”). The Company issued 48 securitizations since 2011 for a total amount of approximately $14.4 billion.

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 ACA’s historical static pool data. KBRA also conducted an operational assessment on the originator and servicer, as well as a review of the transaction’s legal structure and transaction documents. Operative agreements and legal opinions were reviewed prior to closing.

To access ratings and relevant documents, click here.

Click here to view the report.

Methodologies