KBRA Assigns Preliminary Ratings to Credit Acceptance Auto Loan Trust 2024-3
11 Sep 2024 | New York
KBRA assigns preliminary ratings to three classes of notes issued by Credit Acceptance Auto Loan Trust 2024-3 (“CAALT 2024-3”), a $500 million auto loan ABS transaction.
CAALT 2024-3 represents the third ABS securitization in 2024 for Credit Acceptance Corporation’s (“Credit Acceptance” or the “Company”). Credit Acceptance has issued 41 ABS transactions and 15 bank-sponsored commercial paper conduit transactions since 2003.
The structure and collateral for CAALT 2024-3 are generally similar to the prior CAALT transactions. CAALT 2024-3 includes a 24-month revolving period during which principal collections may be used to purchase additional collateral. The transaction has initial credit enhancement levels of 59.41% for the Class A Notes, 43.20% for the Class B Notes, and 21.62% for the Class C Notes. Credit enhancement consists of overcollateralization (“O/C”), excess spread, a reserve fund funded at closing and subordination (except for the Class C Notes).
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