KBRA Assigns Preliminary Ratings to American Credit Acceptance Receivables Trust 2025-2
6 May 2025 | New York
KBRA assigns preliminary ratings to five classes of notes issued by American Credit Acceptance Receivables Trust 2025-2 (“ACAR 2025-2”), an ABS collateralized by a pool of auto loans.
ACAR 2025-2 will issue five classes of notes totaling $437.2 million. The ratings reflect initial credit enhancement of 63.35% for the Class A notes through 15.80% 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 second ABS securitization in 2025 for American Credit Acceptance, LLC (“ACA” or the “Company”). The Company has issued 50 securitizations since 2011 for a total amount of approximately $15.5 billion.
ACA is a privately held subprime auto finance company that has been under current ownership since 2007. The Company is an independent auto loan originator operating in all 50 states. As of March 31, 2025, ACA has a managed serviced portfolio of approximately $5.8 billion. Based on financials provided by the Company, ACA has been profitable since 2009. The Company generated positive net income for 2024, however this was lower than the comparative period in 2023 due to an increase in loan loss reserve provision.
To access ratings and relevant documents, click here.
Click here to view the report.