Press Release|ABS
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KBRA Affirms and Upgrades Ratings from GLS Auto Select Receivables Trusts

8 Dec 2025   |   New York

Contacts

KBRA affirms its ratings on eight classes of notes and upgrades its ratings on five classes of notes issued from three GLS Auto Select Receivables Trust (“GSAR”) transactions. KBRA’s analysis indicated that existing credit enhancement for the notes is sufficient to support the revised and affirmed ratings. All of the securities with upgraded ratings experienced increased credit enhancement. The data used for this review is as of the November 2025 distribution date (October 2025 collection period). To date, the securities have received timely interest payments.

In performing its rating review, KBRA utilized its Auto Loan ABS Global Rating Methodology, as well as its Global Structured Finance Counterparty Methodology and ESG Global Rating Methodology. In determining these rating actions, KBRA reviewed the collateral performance to date and projected the remaining loss for the transactions based on current assumptions. The rating actions, along with related deal and tranche performance information, are available in spreadsheet form in the accompanying GLS Auto Select Receivables Trust Comprehensive Surveillance Dashboard. GSAR 2025-3 was not included in this review as it is less than six months seasoned.

The loans supporting the GSAR transactions were originated by Global Lending Services LLC (“GLS” or the “Company”), a Greenville, SC–based auto finance company that provides financing to franchise and independent auto dealerships across the U.S. Founded in 2011, GLS is currently majority-owned by funds managed by Sound Point Capital Management, L.P. (“Sound Point”), an alternative asset manager. In October 2025, GLS announced a definitive agreement to be acquired by Sixth Street Partners, LLC. The Company is led by a stable, long-tenured management team with extensive experience in the auto finance sector which is expected to continue to oversee GLS’s operations following the acquisition.

Since inception, funds managed by Sound Point and legacy funds formerly managed by BlueMountain Capital Management have invested approximately $135 million in the Company. Based on financial information provided by GLS, and excluding the effects of CECL implementation, the Company has maintained consistent profitability since 2017. As of September 30, 2025, GLS reported total assets of approximately $9.5 billion, loss-absorbing capital of roughly $824.7 million, and an aggregate managed portfolio of $7.7 billion.

The Company began originating subprime loans in 2013 and near prime loans via the “Select Program” in October 2021. The “Select Program” is a distinct product offering separate from the Company’s subprime originations and is the collateral backing the GSAR securitization program. GLS’s typical near prime customer may have experienced prior credit difficulties or have a limited credit history and generally have a FICO score ranging from 620 to 800, compared to 490 to 650 for GLS’s typical subprime customer. In addition to the GSAR platform, GLS has also issued 32 securitizations under their GLS Auto Receivables Issuer Trust (“GCAR”) platform, which are collateralized by subprime auto loans. KBRA has outstanding ratings on 13 GCAR securitizations which are not included in this review.

Click here to view the report.

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

Methodologies

Disclosures

Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

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.

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