KBRA Takes Rating Actions on U.S. Auto Funding Trust 2022-1

KBRA has taken rating actions on U.S. Auto Funding Trust 2022-1, an auto loan ABS transaction. KBRA downgraded the rating on the Class A and Class B Notes due to deteriorating credit performance and affirmed the ratings on the Class C, Class D and Class E Notes. Of the downgrades, the rating on the Class A Notes reflects KBRAs view that the notes are unlikely to receive repayments of its full outstanding principal amount on or before its legal final maturity date of April 15, 2025. The rating on the Class B Notes reflect the that Notes’ are also susceptible to principal loss over their remaining term. Of the affirmations, the Class C, Class D and Class E were previously lowered to C (sf) and similarly remain susceptible to principal loss over their remaining term. In addition, the Class D and Class E have not received any interest payments for the last 12 and 15 collection periods, respectively. At this time, the Class D and Class E are not expected to receive timely interest payments for some time, and the Class B and Class C are likely to incur interest shortfalls due to a change in waterfall payments as a result of the likely default on principal payment of the Class A Notes. The data used in this report is as of the January 2025 distribution date (December 2024 collection period).

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