KBRA Assigns Preliminary Ratings to FinBe USA Trust 2025-1
11 Jun 2025 | New York
KBRA assigns preliminary ratings to three classes of notes totaling to $123.17 million issued by FinBe USA Trust 2025-1 (“FinBe 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.
As of the April 30, 2025 statistical cutoff date, the notes are collateralized by a pool of fixed rate installment automobile loans with an average current principal balance of $18,492.35, weighted average non-zero FICO score of 595, weighted average APR of 22.12% and weighted average original and remaining term of 68 and 52 months, respectively. Approximately 60.6% of the loans by principal balance in FinBe 2025-1 are to borrowers with no FICO score.
FinBe 2025-1 represents the second term ABS securitization issued by FinBe Inc. (“FinBe” or the “Company”), formerly known as Crédito Real USA Finance, LLC. The Company issued its inaugural securitization in 2021.
FinBe is an indirect auto finance company established in 2007 and headquartered in Fort Lauderdale, Florida. The Company serves consumers who are typically unable to obtain financing from traditional lending sources such as credit unions, banks, and captive auto finance companies.
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 FinBe’s historical static pool data. KBRA considered its operational review of FinBe 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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