KBRA Assigns Ratings to GLS Auto Receivables Issuer Trust 2025-1
18 Feb 2025 | New York
KBRA assigns ratings to five classes of notes (seven tranches) issued by GLS Auto Receivables Issuer Trust 2025-1 (“GCAR 2025-1”), an auto loan ABS transaction.
GCAR 2025-1 represents the second term ABS securitization of 2025 for Global Lending Services, LLC (“GLS” or the “Company”), and the first under the GCAR program. The Company has issued 30 securitizations under their GCAR program following its inaugural issuance in 2014. GCAR 2025-1 issued five classes of notes (seven tranches) totaling $666.54 million collateralized by a pool of retail automobile contracts, made to subprime obligors and secured by new and used automobiles.
GLS is an auto finance company founded in 2011 and is majority-owned by funds managed by Sound Point Capital Management, L.P. (“Sound Point”), an alternative asset manager. Funds managed by Sound Point and legacy funds formerly managed by BlueMountain Capital Management have invested $135 million since GLS’ inception. As of December 31, 2024, the Company had total assets of approximately $7.5 billion, loss absorbing capital of approximately $646.3 million, and an aggregate managed portfolio balance of $7.7 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 GLS’s historical static pool data. KBRA considered its operation review of GLS, as well as periodic due diligence calls with GLS. Operative agreements and legal opinions were reviewed prior to closing.
To access ratings and relevant documents, click here.
Click here to view the report.