KBRA Assigns Preliminary Ratings to AgoraCapital Auto Securities Trust 2025-1
2 May 2025 | New York
KBRA assigns preliminary ratings to three classes of notes issued by AgoraCapital Auto Securities Trust 2025-1 (“ACAST 2025-1”), a subprime auto receivable ABS transaction. ACAST 2025-1 will issue three classes of notes totaling $112.13 million, where credit enhancement consists of overcollateralization, subordination of junior note classes (except for the Class C notes), a cash reserve account, and excess spread. The transaction has initial credit enhancement ranging from 38.30% for the Class A notes to 16.35% for the Class C notes. As of the March 31, 2025, statistical cut-off date, the notes are collateralized by a pool of fixed rate retail installment contracts with a non-zero weighted average credit score of 624, an average principal balance of $14,038, and a weighted average interest rate of 18.30%.
ACAST 2025-1 represents the inaugural rated ABS securitization for Agora Data, Inc. (“Agora” or the “Company”). Agora does not own or operate automobile dealerships, and the Company does not create or originate retail installment contracts, rather the Originator assigns a retail installment contract to Agora. The Company purchases retail installment contracts through two primary origination channels: 1) the dealer channel, which includes originations from network of independent and franchised dealerships and; 2) the financial institutions group channel, which includes originations from financial companies including independent finance companies, banks, credit unions and other financial institutions.
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 static pool data and the underlying collateral pool and stressed the capital structure based upon its stress case cash flow assumptions. KBRA considered its operational review of Agora, as well as several business updates with the Company since that time. Operative agreements and legal opinions will be reviewed prior to closing.
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